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Bolivia’s tax rebate initiative saw a significant uptick in early 2025. According to the National Tax Service (Servicio de Impuestos Nacionales, SIN), refunds under the program grew by 14.6% during the first two months of the year compared to the same period in 2024, a signal of both increased participation and stronger tax compliance among low-income Bolivians.
Key Financial Highlights
- Bs18.8 million in VAT refunds were issued from January to February 2025, compared to Bs16.4 million during the same months in 2024.
- In February 2025, SIN disbursed Bs9.8 million, marking a 15.3% increase over February 2024.
- January 2025 saw Bs9 million refunded a 13.9% increase from January of the previous year.
These gains reflect not only the program’s growing financial footprint but also a broader cultural shift in public engagement with the tax system.
Driving Factors Behind the Growth
The president of SIN, Mario Cazón, attributes the rise to increasing tax literacy and awareness. Citizens frequently request official sales invoices for their purchases, a prerequisite for Re-IVA eligibility. This behavioral shift suggests the success of SIN’s public education campaigns around tax rights and benefits.
Participation Trends: Renewals and New Enrollees
As of early 2025, the Re-IVA program includes 109,412 active participants, a mix of continuing and first-time beneficiaries:
- 91,761 individuals renewed their registration from previous years.
- 17,651 new enrollees joined the program during the first two months of 2025.
This dual growth from both retention and outreach reinforces the perception of Re-IVA as a trusted and accessible fiscal tool for low-income earners.
What Is Re-IVA?
Launched as part of Bolivia’s efforts to redistribute income and promote formal economic behavior, the Re-IVA program reimburses 5% of the Value Added Tax (VAT) on purchases to eligible individuals. The refund aims to alleviate the tax burden on citizens earning Bs9,000 or less monthly (approximately USD 1,300).
Eligible Beneficiaries Include:
- Public and private sector employees (Dependientes)
- Self-employed workers (Independientes)
- Pensioners and retirees (Jubilados)
By encouraging these groups to request invoices for everyday purchases, the government effectively broadens the tax base and reduces underreporting from merchants.
How to Register and Claim Refunds
Re-IVA offers two primary participation modes to accommodate differing levels of digital access:
1. Automatic Mode
- The SIN system automatically matches tax invoices to the participant’s National ID Number (NIT).
- No monthly filing required; refunds are calculated and disbursed automatically.
2. Manual Mode
- Beneficiaries submit Form 111 each month via the “Mis Facturas” mobile application.
- This method allows individuals to declare qualifying invoices manually if not automatically captured by SIN.
Both systems aim to reduce administrative friction and encourage wider participation.
Looking Ahead
With sustained growth in both participation and refund volume, Re-IVA continues to demonstrate its role as a targeted economic empowerment policy. It not only provides tangible financial relief to low-income households but also fosters a culture of fiscal responsibility and transparency.
As Bolivia strengthens its digital tax infrastructure and outreach, the Re-IVA program may well become a model for other Latin American nations seeking to blend tax justice with inclusive development.
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