A commercial invoice is the final, official bill issued after goods are shipped or services are delivered. It is a legal document used for customs, payment collection, and accounting.

When Is a Commercial Invoice Used?

Commercial invoices are required in virtually every business transaction, but they are especially important in:

  • International shipping — customs authorities use the commercial invoice to determine import duties and taxes
  • B2B sales — the commercial invoice is the primary payment request between businesses
  • Tax reporting — both seller and buyer use commercial invoices for VAT, GST, or sales tax records

What to Include on a Commercial Invoice

A complete commercial invoice should contain:

  • Seller name, address, and contact information
  • Buyer name, address, and contact information
  • Invoice number and date
  • Description of goods or services (including HS codes for international trade)
  • Quantity, unit price, and total for each line item
  • Currency used
  • Payment terms (e.g., Net 30)
  • Shipping details: weight, dimensions, freight cost, insurance
  • Country of origin of the goods
  • Total invoice value
  • Signature (required by some countries)

Commercial Invoice vs Proforma Invoice

| | Commercial Invoice | Proforma Invoice | |---|---|---| | When sent | After delivery | Before delivery | | Legal status | Legally binding payment request | Estimate only | | Used for customs | Yes — required for clearance | Sometimes for pre-clearance | | Tax deductible | Yes | No | | Records as revenue | Yes | No |

Example

A furniture exporter in Vietnam ships 200 chairs to a wholesaler in Germany:

Commercial Invoice #CI-2026-0412

  • 200x Wooden Dining Chair (HS Code 9401.69) — $35.00/unit — $7,000.00
  • Packing and crating — $250.00
  • Freight (FOB Ho Chi Minh City) — $1,200.00
  • Insurance — $140.00
  • Total: $8,590.00
  • Country of Origin: Vietnam
  • Payment Terms: Net 30

German customs uses this invoice to assess import duty. The wholesaler uses it to process payment and claim input VAT.

Common Mistakes

  • Missing HS codes. Customs authorities require harmonized system codes for every product in international shipments. Missing codes cause delays.
  • Incorrect values. Understating the invoice value to reduce duties is illegal. Always declare the true transaction value.
  • Wrong currency. State the currency clearly. Ambiguity between USD and local currency creates payment disputes.
  • No country of origin. Required for customs in most countries. Omitting it can hold your shipment at the border.