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Bolivia Restores 100% VAT Credit on Fuel Purchases, Boosting Business Cash Flow and Compliance

  • Bolivia’s National Tax Service (SIN) has removed the 30% cap on VAT credits for fuel, allowing 100% VAT credit on gasoline and diesel purchases from 13 April 2026.
  • The reform improves cash flow and reduces costs for businesses, especially those heavily reliant on fuel, such as transport operators, small businesses, and entrepreneurs.
  • The change simplifies compliance for self-employed individuals by fully recognizing fuel expenses.
  • The measure aims to strengthen tax compliance and transparency by encouraging consumers to request invoices at fuel stations.
  • The reform follows draft legislation introduced on 31 December 2025 to reinstate full VAT credit eligibility for fuel.

Source: regfollower.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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