What is a Commercial Invoice? How It Differs from a Proforma Invoice

A commercial invoice is the final document a seller issues after goods are shipped — the official request for payment that also serves as the primary customs declaration document. It is often confused with a proforma invoice, but the two documents have completely different roles and legal weight.

What is a commercial invoice?

A commercial invoice is a legal demand for payment issued after goods have been dispatched or services have been delivered. It is the document that:

• Customs authorities use to calculate import duty and tax
• The buyer's accounts payable department uses to process payment
• Banks use to verify the value of goods in LC presentations
• Auditors and tax authorities use to verify the transaction

Unlike a proforma invoice, a commercial invoice refers to an actual completed shipment — not a future or proposed one.

Commercial invoice vs proforma invoice — side by side

When to issue each document

Issue a proforma invoice when:

• The buyer needs a formal quote for internal approval
• The buyer needs to open a Letter of Credit
• The buyer needs to apply for an import permit
• You need a deposit before starting production
• The exact shipped quantity is not yet confirmed

Issue a commercial invoice when:

• Goods have been shipped or are ready for dispatch
• You know the exact shipped quantities and values
• The buyer's bank needs to release LC payment
• Customs authorities need to clear the goods at destination
• You are requesting final payment from the buyer

What fields must match between proforma and commercial invoice?

In LC transactions, every field on the commercial invoice must match the LC — which was issued based on the proforma. In practice, these must match:

• Product description (word-for-word)
• HS codes
• Unit prices (unless the LC permits variance)
• Currency
• Incoterms and named place
• Seller and buyer details

Can a proforma invoice replace a commercial invoice?

No — in most jurisdictions, a proforma invoice cannot be used for customs clearance or tax purposes. Some countries allow a proforma to be used for a temporary customs admission (ATA carnet or similar), but for final import clearance, a commercial invoice is required.

Create your proforma invoice using our free online generator and download a free template for both proforma and commercial invoice formats.