Commercial invoice
What a commercial invoice is, what goes on it and how Irish businesses use one for trade outside the EU
Published Wednesday 30 September 2026
Table of contents
Key takeaways
- A commercial invoice records an international sale of goods, and customs uses it to value the shipment and work out duty and VAT
- Irish businesses need one for goods moving into or out of the EU, including Great Britain, but not within the single market
- A clear invoice names the buyer and seller, describes the goods, and states their commodity codes, value, currency and shipping terms
- Declared values must be true, and Revenue requires you to keep the original records for six years
What is a commercial invoice?
A commercial invoice is the document a seller issues to record a sale of goods to a buyer in another country. It shows customs what’s being shipped and what it’s worth, so the goods can clear the border.
Think of it as a passport for your shipment: it tells border officials what’s travelling and what it’s worth. Customs uses it to calculate duty and VAT. Your buyer keeps it as a record of the purchase, and banks rely on it for letters of credit.
Whether you need one depends on where your goods are going. The sections below cover when it applies and why customs asks for it.
When Irish businesses need a commercial invoice
You need a commercial invoice when goods leave or enter the EU. That includes trade with Great Britain, which has been outside the EU customs union since Brexit.
Say you run a furniture workshop in Galway and ship a dining table to a customer in Manchester. That sale needs a commercial invoice, and so does a Cork café importing coffee machines from the US.
Sales to other EU countries work differently. Goods moving within the single market, say from Dublin to Lyon, don’t go through customs clearance, so your standard VAT invoice covers the sale.
Why customs needs a commercial invoice
In Ireland, Revenue uses the commercial invoice to support customs declarations and assess the correct duty and VAT on non-EU goods. Anyone bringing in goods from outside the EU, Great Britain included, must lodge an electronic declaration through Revenue’s Automated Import System (AIS).
The invoice supplies most of the figures for that declaration, and exports follow a similar process through the Automated Export System (AES). If the invoice is missing or unclear, your shipment can be held at the port while customs asks questions.
A bill of lading does a different job. The carrier issues it as a receipt for the goods, evidence of the contract of carriage and a document of title, while the commercial invoice records the sale itself.
What information goes on a commercial invoice?
There’s no set format for a commercial invoice, as long as it includes every detail customs needs. The EU’s Access2Markets guidance on customs clearance documents sets out minimum data, such as the exporter, importer, invoice date and invoice number.
Start with the details that identify the sale and the people involved. Most invoices include:
- A unique invoice number and the date of issue
- Your business name, address, Economic Operators Registration and Identification (EORI) number, VAT number and contact details
- The buyer’s full name, address and any tax identification number their country requires
- The payment terms you’ve agreed, such as 30 days from the invoice date
- A signed declaration that the information is true and correct
Next, add the details customs uses to classify and value the goods. These usually cover:
- A specific description of each item
- The quantity, number of packages and net and gross weight
- The Harmonised System (HS) code, also called the commodity code, for each item
- The country of origin, meaning where the goods were made
- The unit price, total value and currency of the sale
- The International Commercial Terms (Incoterms) rule that applies, such as Ex Works (EXW) or Delivered at Place (DAP)
- Freight and insurance charges, if the price doesn’t already include them
Revenue’s guide to classifying goods with commodity codes helps you find the right code. The International Chamber of Commerce (ICC) publishes the Incoterms rules, which set out who pays for freight, insurance and duty.
Why accurate information matters
Errors or gaps on the invoice can lead to customs delays and sometimes fines. If the declared value doesn’t match the goods, customs may hold your shipment while it investigates.
Accurate invoices also protect your cash. When the details are right from the start, you’re less likely to overpay duty, and your buyer has fewer reasons to query the bill. That keeps your money owed by customers moving towards your bank account.
Is a commercial invoice legally binding?
A commercial invoice is a legally recognised document. It records the agreed terms of the sale, such as price, quantity and payment terms, and customs relies on it for the details needed to establish the true value of your goods.
That gives the invoice real legal weight. By signing it, you’re declaring that the values and descriptions are true. Customs values goods at the price actually paid or payable, so the value on your invoice needs to match what your buyer pays.
It also counts as evidence if a deal goes wrong. If your buyer disputes the price or quantity, the invoice and contract together show what was agreed and shipped.
How to create a commercial invoice
Once you know the required details, putting an invoice together is straightforward. Follow these five steps for your next shipment outside the EU.
Step 1: Get your EORI number and gather your details
Check that your business has an EORI number before your first shipment. You need one to trade goods with countries outside the EU. You can apply for it through Revenue once you’re set up on Revenue Online Service (ROS).
Then collect the buyer’s details, a description of each product, commodity codes, unit prices and the agreed Incoterms rule. If you’re unsure about rules in the destination country, ask your freight forwarder or customs broker.
Step 2: Choose your format
You can create one in accounting software, a spreadsheet template or your carrier’s online tool. Software keeps invoice numbers and customer details consistent, so you spend less time retyping.
Whichever you pick, make sure it has room for every required field. Xero’s guides to invoicing cover layout and numbering if you’re starting from scratch.
Step 3: Complete the invoice
Fill in the seller and buyer details first, then list each product with its description, quantity, unit price and commodity code. Finish with the total value, currency and shipping terms.
Make descriptions specific enough for a customs officer to picture the goods. “Clothing” is too vague, while “women’s knitted wool jumpers” tells customs exactly what’s in the box.
Step 4: Review values and check samples and gifts
Check that the values, quantities and descriptions match your purchase order and packing list. Confirm each commodity code is right for the item.
Give free samples and gifts a realistic value too, based on what the goods would normally sell for. Revenue’s rules on how customs values goods apply whether or not your buyer pays.
Step 5: Make copies and keep your records
Prepare enough copies for you, your buyer and the carrier or customs broker handling the shipment. Store the originals with your customs declarations.
Revenue requires you to keep the originals of your business records for six years. Organised copies also make it easier to follow up on a bill that’s still unpaid.
Common mistakes to avoid
Most customs holdups trace back to a handful of slips you can easily prevent. Watch for these mistakes before you ship:
- Vague product descriptions, such as “parts” or “samples”, that don’t identify the goods
- Wrong commodity codes, which lead to the wrong duty rate or a held shipment
- Undervalued goods, including samples or gifts marked as having no value
- Missing details, such as the buyer’s address, your EORI number or the country of origin
- Missing or mismatched Incoterms, which leave customs unsure who pays for freight, insurance and duty
- A missing currency, or values stated in a different currency from the one you’re charging
- Figures that don’t match your packing list or bill of lading
Commercial invoice vs proforma invoice
A proforma invoice is a preliminary document you send before a sale is confirmed. It sets out the expected goods, prices and terms, so your buyer knows what the order will cost.
Picture a buyer in Toronto who wants a full cost breakdown before ordering. You send a proforma, they confirm the order, and you issue the commercial invoice when the goods are ready to ship. The two documents differ in four main ways:
- A proforma comes before the sale is final, while the commercial invoice follows once the goods are ready to go
- Customs clears goods using the commercial invoice, while a proforma helps your buyer arrange finance or import licences
- A proforma is an estimate rather than a demand for payment, though some sellers use it to ask for a deposit
- The commercial invoice is the legal record of the sale, while a proforma’s figures can still change
Agreeing payment terms at the proforma stage is a simple way to keep payments on schedule once the goods have shipped.
Commercial invoice vs regular invoice
Both documents record a sale between a buyer and a seller. The difference lies in who reads them and what they need to show.
You’ll use a regular invoice for sales within Ireland and the rest of the EU. For a business customer in another EU country, that invoice usually shows their VAT number as well as yours. You need a commercial invoice when goods move into or out of the EU, including trade with Great Britain.
A regular invoice covers the seller, buyer, items and amount due. A commercial invoice adds customs details such as commodity codes, country of origin and Incoterms, because customs clearance in the EU always needs one.
Either way, your invoice is what prompts the customer to pay. Offering convenient ways to pay online makes it easier for them to settle up.
Send accurate invoices with Xero
Careful paperwork keeps your goods moving through customs and your payments on track, whether you’re shipping to Birmingham or Boston. Xero helps you create professional invoices, send them from anywhere and see who’s paid, with automated reminders for anything overdue.
Your invoices, payments and records stay in one place, ready when Revenue or your accountant asks for them. Try Xero for your business and get one month free.
FAQs on commercial invoices
These answers cover the questions Irish businesses often ask about customs paperwork.
Do I need a commercial invoice for every international shipment?
You need one for goods entering or leaving the EU, but not for goods moving within the single market. Low-value parcels count too. Since 1 July 2026, the EU has abolished the €150 duty exemption and charges a temporary €3 customs duty on items bought online.
Who provides the commercial invoice?
The seller, or exporter, prepares it and sends it with the shipping documents. If you’re importing, ask your supplier for it before the goods leave, because your customs broker needs it to lodge your import declaration.
Can I make my own commercial invoice?
Yes, any format works as long as it has all the required details. Creating it in your accounting software keeps the invoice number and figures consistent with your books.
Do I need an EORI number on my commercial invoice?
Yes, include it, because customs uses it to identify your business on every declaration. Revenue usually issues your EORI number as “IE” followed by your VAT or tax registration number, so it’s easy to find.
What happens if my commercial invoice has errors?
Customs may hold or inspect the goods until the error is fixed, and you could pay the wrong duty. Contact your customs broker straight away so they can correct the declaration and you can issue an amended invoice.
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Disclaimer
This glossary is for small business owners. The definitions are written with their requirements in mind. More detailed definitions can be found in accounting textbooks or from an accounting professional. Xero does not provide accounting, tax, business or legal advice.