Is e-Invoicing applicable to nil-rated or wholly-exempt supplies?

No, e-invoicing is not applicable to nil-rated or wholly-exempt supplies. In these cases, only a bill of supply is issued and not a tax invoice.

A tax invoice is a document that is used to record a supply of goods or services that is subject to GST. It must contain certain information, such as the supplier's and recipient's GST registration numbers, the date of supply, the description of the goods or services, and the amount of GST payable.

A bill of supply is a document that is used to record a supply of goods or services that is not subject to GST. It does not need to contain the same information as a tax invoice, such as the GST registration numbers of the supplier and recipient.

The government has made e-invoicing mandatory for certain types of supplies, including those that are subject to GST. However, e-invoicing is not mandatory for nil-rated or wholly-exempt supplies, as these supplies do not attract GST.

Here are some of the reasons why e-invoicing is not mandatory for nil-rated or wholly-exempt supplies:

• There is no need to track the movement of goods or services that are not subject to GST.
• There is no need to collect GST on these supplies, so there is no need to verify that the GST has been paid.
• The cost of implementing e-invoicing for nil-rated or wholly-exempt supplies would be disproportionate to the benefits.

If you are a supplier of nil-rated or wholly-exempt supplies, you are not required to generate e-invoices. However, you may still choose to do so voluntarily.