Bolivia has scrapped the 30% cap on fuel VAT credits, allowing taxpayers to claim the full 100% from 13 April 2026—cutting costs, improving cash flow, and strengthening compliance across key sectors.
Bolivia’s National Tax Service (SIN) has removed the long-standing restriction on fuel-related tax credits, allowing taxpayers to claim 100% of VAT on gasoline and diesel invoices. Previously, only 70% was creditable, leaving businesses to absorb the remaining 30% as a cost.
The reform eliminates the partial credit system, meaning taxpayers can now recover the entire tax amount paid on fuel through their monthly returns. This change is expected to quickly improve cash flow, particularly for industries heavily dependent on fuel.
Transport operators stand to gain the most, as fuel is a primary expense, translating into higher working capital. Small businesses, microenterprises, and entrepreneurs will also benefit from lower operating costs and easier VAT deductions.
For self-employed individuals, the update simplifies compliance by fully recognising fuel expenses tied to their activities.
Beyond cost savings, the measure promotes better tax compliance. By granting full credit, authorities aim to encourage consumers to request invoices at fuel stations, ensuring proper reporting and strengthening transparency across the system.
Earlier, on 31 December 2025, Bolivia’s Ministry of Economy and Public Finance introduced draft legislation to remove the 70% VAT credit cap on fuel purchases, to reinstate full (100%) credit eligibility for gasoline and diesel.
