Type: Draft Legislation
The President submitted Bill No. 164-20 to the National Assembly on 20 April 2021, which imposes VAT duties on digital services offered by foreign service providers. The Bill was made publicly available on the Chamber of Deputies’ website on 4 May 2021, and it includes the following amendments:
- broadening of the definition “VAT taxpayer” to include service providers or middlemen that supply any service consumed, utilized, or exploited in Bolivia from outside;
- provision of a stand-alone definition for “digital services,”;
- Inclusion of a foreign VAT taxpayer’s registration and payment obligation. If foreign VAT taxpayers are not registered with the Bolivian Tax Administration, financial firms are required to function as withholding agents.
- setting up specific invoicing and input tax processes for foreign VAT taxpayers who deliver digital services.
Effective date: 20 April 2021