LEGAL ALERT | TAX
Cochabamba, October 2026
Since 9 October 2026, anyone making the first sale in the domestic market of inputs, seeds, drones, genetics, tools, equipment, capital goods or industrial plants for productive sectors must invoice it without VAT (IVA), using a dedicated option of the National Tax Service (SIN) and with no VAT credit for the buyer. This is set out in Board Regulatory Resolution (RND) No. 102600000039, which puts into practice the exemption in article 9 of Law No. 1755 and Supreme Decree No. 5709.
I. Background
Law No. 1755, published on 30 July 2026, amended the 2026 General State Budget and introduced, in its article 9, a tax incentive for production. The incentive exempts from customs duty and VAT the import and domestic sale of certain goods intended for productive sectors, for a period of five years.
Supreme Decree No. 5709 of 16 September 2026 regulated that article. Among other things, it set the scope of the import exemption through an annex of goods identified by tariff subheading, and established that the first domestic sale is also exempt from VAT, without generating a VAT credit.
What was still missing was the operational piece: how to issue that invoice in the SIN's systems. That piece arrives with RND No. 102600000039 of 9 October 2026.
II. What the resolution provides
RND No. 102600000039 regulates article 9 of Law No. 1755 and article 2 and paragraphs I and II of article 3 of Supreme Decree No. 5709. Its four core provisions are:
1. New invoicing option. Invoices for the first sale of these goods are issued with the option "Facturación Bienes e Insumos Productivos Ley N° 1755", within the "Sistema de Facturación" module of the SIN Virtual Office.
2. No VAT credit. Invoices issued this way do not give the buyer the right to a VAT credit.
3. Taxpayer register activity. The same option allows taxpayers to add to the National Taxpayer Register (RNC) the activity "Venta al por mayor de insumos, semillas, drones y accesorios" (wholesale of inputs, seeds, drones and accessories), linked to Law No. 1755.
4. Access and responsibility. Access is with the same SIAT en Línea credentials, and its use is the taxpayer's responsibility.
The invoicing option and the economic activity are temporary: under the Sole Additional Provision, they apply only while article 9 of Law No. 1755 is in force.
III. Scope
a) Goods. Inputs, seeds, drones and their accessories, genetics, tools, equipment, capital goods and industrial plants. On import, the benefit is limited to the goods listed by tariff subheading in the annex to Supreme Decree No. 5709.
b) Target sectors. Agriculture and livestock, industry, construction, transport and mining. The benefit depends on the productive use of the goods, not only on their nature.
c) Who is covered. Taxpayers making the first sale of these goods in the domestic market, typically importers and wholesale distributors. Later sales down the chain are not covered by this option.
d) Term. Five years from the publication of Law No. 1755, that is, until July 2031.
e) Entry into force of the RND. From its publication on 10 October 2026.
IV. Key considerations
1. Classification is the seller's responsibility. Invoicing as exempt goods that are not listed in the annex, or that have no productive use, may lead to an assessment of unpaid VAT with interest and penalties. The RND itself places the use of the option under the taxpayer's responsibility.
2. The seller's VAT credit. Sellers with both exempt and taxable sales must review how they allocate the VAT credit on common purchases, under Law No. 843 and its regulations. Incorrect allocation is a frequent audit finding.
3. The buyer does not recover VAT. Since no VAT credit arises, the real benefit for the buyer depends on the price no longer including the tax. If the buyer receives an invoice with VAT for goods that should have been sold exempt, its VAT credit may be challenged.
4. Other taxes. The resolution deals with VAT. The treatment of the Transactions Tax (IT) and corporate income tax (IUE) does not change and must be assessed separately.
5. Existing inventory. The RND does not clarify the treatment of goods imported before Law No. 1755 with VAT paid at customs. These should be analysed case by case before invoicing them under the new option.
6. Existing contracts. Quotes and supply contracts with "VAT included" prices may need an amendment to reflect the exemption and avoid price disputes.
V. Recommendations
For importers and distributors
• Check your catalogue against the annex to Supreme Decree No. 5709, item by item and by tariff subheading.
• Add the activity "Venta al por mayor de insumos, semillas, drones y accesorios" to the RNC before issuing the first exempt invoice.
• Set up your system to separate exempt and taxable sales, and review the allocation of the VAT credit on common purchases.
• Document the productive use of each sale: a statement from the buyer, the business activity registered under its tax ID (NIT) or other reasonable evidence.
For buyers in the benefiting sectors
• Ask your suppliers for VAT-free prices on the goods covered and check the invoicing option used.
• Recalculate the cost of your purchases and investments, bearing in mind that there will be no VAT credit.
• Review ongoing supply contracts and, where appropriate, negotiate a price amendment.
VI. How we can help
Our tax team can review the classification of your catalogue against the annex to Supreme Decree No. 5709, support you in updating your taxpayer registration and invoicing system, and adapt your supply contracts. To arrange a review of your case, please contact us through our contact page.
Legal references
• Board Regulatory Resolution No. 102600000039 of 9 October 2026 (National Tax Service).
• Law No. 1755, article 9, published on 30 July 2026.
• Supreme Decree No. 5709 of 16 September 2026, articles 2 and 3.
• Law No. 843 (Consolidated Text), Value Added Tax.
This document is for information only and does not constitute legal advice. Each case must be assessed individually.
Reinicke Ostria — Vision beyond. Precision always.