On 31 December 2023, Bolivia published Law No. 1546 on the General State Budget for 2024 in the Official Gazette. This law introduces a range of incentives for industrialization and expands the existing VAT incentives. The incentives were enacted on 1 January 2024 and will be in force until 31 December 2024. In addition to Law No. 1546, Bolivia also published Supreme Decree 5095 in the Official Gazette as a regulatory legislation for the zero-rate or VAT exemption.
The incentives are:
- Exemption from VAT on the import of industrial plants and capital goods for the agricultural, industrial, construction, and mining sectors.
- A 0% VAT on the domestic sales of industrial plants and capital goods used in agricultural, industrial, construction, and mining sectors.
To be eligible for zero-rate or VAT exemption, the age of capital goods and industrial plants must not exceed 10 years. The VAT exemption for imports is applicable to state-owned entities and public enterprises, provided that the capital goods are new.
