The 2012 worldwide VAT, GST and sales tax guide

70 B OLIVIA
• For securities registered on the Bolivian Stock Exchange, capital
gains generated by sales, results derived from the valuation
processes determined by the Financial Supervisory Authority
of Bolivia (Autoridad de Supervisión del Sistema Financiero,
or ASFI) and results generated in the application of generally
accepted accounting principles
• Transfers of goods or assets subject to the securitization process
( titularización ) administered by the securitization association,
at the beginning and end of the process (under this process, the
goods must be transferred to an independent fund [ patrimonio
autonomo ] and, when the process is completed, the goods are
returned to the original owner)
• Operations regarding sales or transfers of portfolios (financial
intermediation, insurance and pension)
• Inbound tourism and lodging services for foreign tourists without
a residence or address in Bolivia
• Artistic events focused on production, presentation and promotion
of theater, dancing, national folklore, painting, sculpture
and movies of Bolivian artists, if they are sponsored or developed
in locations in Bolivia that are managed or owned by a
municipal government or the Bolivian government
Exports are taxed at a zero rate.
E. Time of supply
The time when VAT becomes due is called the “time of supply” or
“tax event.” The tax event for goods is when the goods are delivered
or when an act that implies the transfer of the ownership
occurs. The tax event for services is the earlier of when the service
is performed or completed, and when full or partial payment of the
price is received.
Continuous supply of services. The continuous supply of services
(electricity, water, and gas that is delivered to homes) must be
invoiced on a monthly basis.
Imported goods. The tax event for imported goods is when the
goods clear all customs procedures.
F. Recovery of VAT by taxable persons
A taxable person may recover input VAT (also known as credit
VAT), which is VAT charged on goods and services supplied to it
for business purposes. A taxable person generally recovers input
VAT by deducting it from output VAT (also known as debit VAT),
which is VAT charged on supplies made.
Input VAT includes VAT charged on goods and services supplied
in Bolivia and VAT paid on imports of goods.
A valid tax invoice or customs document must generally accompany
a claim for input VAT.
Nondeductible input VAT. Input VAT cannot be recovered on
purchases of goods and services that are not used for business
purposes (for example, goods acquired for private use by an
entrepreneur).
For deducting VAT credit with respect to transactions in an
amount of Bs 50,000 or more, payment supports (checks, vouchers
or other documents) issued by a financial intermediation