Bolivia VAT on digital services update

VAT on digital services to be extended to non-resident providers

Bolivia’s Servicio de impuestos nacionales (SIN) is to relaunch plans to extend VAT obligations to non-resident providers of digital services. This is likely to start again on 1 July 2024. Key obligations proposed include:

• Taxable supplies include:
  • Streaming or download media
  • Data services
  • Advertising services
  • Online software
  • Data storage
• Non-resident will be required to issue invoices
• Tax settlements may be in US dollars

Nov 2021: pauses on imposing VAT on non-resident e-services providers to consumers

SIN paused on extending its VAT regime to certain digital services provided to its consumers.  In November 2021, SIN confirmed VAT is only applicable for resident providers already registered with Taxpayers Registration List. Previous plans to extend to non-residents is now on hold.

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Previously, there was no specific requirements for providers of electronic services or platform operators to register and charge 13% VAT.

Streaming media, app’s and cloud software subject to VAT

The services include digital services and intermediaries (marketplaces and app shops). In addition to services (streaming or download media; e-learning; cloud-based services; apps; software; e-books or journals; gaming etc), the new rules also apply to goods.

VAT Calc’s global VAT and GST on digital services blog keeps a live update on how countries are imposing indirect taxes on non-resident providers and electronic marketplaces.

Central and South America VAT on digital services