Commercial Invoice
Commercial Invoice Definition
A commercial invoice is a legally binding document used in international shipping that provides details about the sale of goods between a seller (exporter) and a buyer (importer). Unlike a standard or VAT invoice, a commercial invoice is tailored for cross-border transactions and is essential for customs clearance and compliance with international trade regulations.
Whether you’re exporting goods to Europe, importing products from Asia, or handling B2B shipments globally, understanding how to generate a compliant commercial invoice can reduce delays, avoid penalties, and streamline your supply chain.
What Does a Commercial Invoice Include?
A commercial invoice must follow an international invoice format and typically includes the following:
- Seller and buyer contact information
- Invoice number and date
- Proforma invoice reference (if applicable)
- Description of goods (quantity, weight, value, HS code)
- Customs declaration and country of origin
- Freight and insurance details
- Total value of the shipment
- Currency used and payment terms
- Exporter’s signature
Many businesses use a template Excel or pre-built invoicing software to ensure accuracy and consistency. Some countries require additional details, so using a commercial invoice template that’s tailored to the destination country is highly recommended.
Commercial Invoice vs. Proforma Invoice
A proforma invoice is a preliminary bill issued before the shipment is made—it’s used for quotation or approval purposes. A commercial invoice, on the other hand, is final and required for customs processing, tax calculation (like VAT), and legal record-keeping.
| Feature | Proforma Invoice | Commercial Invoice |
|---|---|---|
| Purpose | Quotation / estimation | Official sales document |
| Used for customs? | No | Yes |
| Binding? | No | Yes |
| Payment required? | Not necessarily | Yes (usually triggers payment) |
Why Is a Commercial Invoice Important?
A commercial invoice is vital in international trade for several reasons:
- Customs clearance: Without it, the shipment will be delayed or denied entry.
- Tax compliance: Authorities calculate import duties, tariffs, and VAT based on declared values.
- Audit trail: Serves as proof of transaction for accounting and compliance.
- Dispute resolution: Contains terms that may be referenced in case of claims.
Digital Tools & Templates
Using a digital commercial invoice template (like in Excel or PDF format) can reduce errors and ensure all regulatory fields are filled correctly. Some exporters even embed a commercial invoice inside their international shipping platforms or attach it electronically through customs portals.
If you’re unsure how to begin, you can start with a downloadable sample commercial invoice or build one using InvoiceFly’s customizable export templates, ideal for small businesses scaling into global markets.
How InvoiceFly Simplifies Commercial Invoicing
Creating a legally compliant commercial invoice can feel overwhelming—especially when you’re managing multiple international shipping documents, currencies, and formats. That’s where Invoice Fly comes in.
Invoice Fly helps businesses, freelancers, and exporters generate clean, accurate invoices—whether you’re billing locally or across borders.
With InvoiceFly, you can:
- Instantly generate commercial invoices in multiple languages and currencies
- Use export-ready Free Invoice Template options built for customs compliance
- Customize fields for HS codes, country of origin, VAT, and Incoterms
- Export to PDF or share invoices electronically for faster customs clearance
- Duplicate your proforma invoice into a final commercial version in one click
- Create invoices in seconds with our Free Invoice Generator
Whether you’re shipping goods internationally or scaling your export business, InvoiceFly ensures your commercial invoices are as professional and compliant as the rest of your operation.
✨ Try InvoiceFly free and streamline your invoicing workflow today.
FAQs Collection Letter
A commercial invoice is a legal document required for international shipping that outlines the value, quantity, and description of goods sold for export. It serves as a customs declaration and is necessary for calculating VAT, tariffs, and duties
A standard invoice is used for domestic sales, while a commercial invoice is required for cross-border transactions. A commercial invoice includes additional fields like HS codes, country of origin, and customs details that aren’t present in a standard VAT invoice.
The exporter or seller is responsible for preparing and issuing the commercial invoice. It must be accurate and compliant with the destination country’s customs declaration requirements.
Typically, the seller or the exporting party prepares the commercial invoice. Many use a template Excel, invoicing software, or download a sample to ensure correct formatting.
Yes, you can create your own using a professional commercial invoice template or Excel format. However, it must meet the required fields for customs, including product description, HS codes, and declared value.
The buyer (importer) is responsible for paying the commercial invoice according to the agreed terms. The invoice may also influence who pays taxes, insurance, or customs fees, depending on Incoterms.
It is required for customs clearance, tax compliance, and serves as an official record of the international transaction. Without it, goods may be held, fined, or rejected at the border.
Types include commercial invoices, proforma invoices, VAT invoices, credit notes, and receipts. In global trade, the most important are commercial and proforma invoices.
Its main role is to facilitate customs processing by declaring the nature, value, and origin of goods shipped internationally. It also initiates payment and taxation procedures.
The exporter or seller should issue the commercial invoice once the sale is finalized and the shipment is ready to move across borders.
In most cases, the shipping or logistics department of the exporter completes the form using a commercial invoice template, often customized to match the buyer’s international invoice format.
Yes. While its primary role is for customs, a commercial invoice is also a valid request for payment, especially in B2B international shipping where advance payment or post-shipment billing is required.
