Commercial invoice
Learn what a commercial invoice is, what to include, and how it clears customs when you ship goods overseas.
Published Thursday 23 July 2026
Table of contents
Key takeaways
- A commercial invoice is a customs document that supports international shipping and border clearance.
- It records the seller, buyer, goods description, HS codes, value and shipping terms.
- Accurate details help you avoid customs delays, penalties and rejected shipments.
- In New Zealand, the New Zealand Customs Service uses it to assess duties and clear exports.
Selling overseas comes with paperwork that keeps your goods moving across borders. The commercial invoice is one of the most important documents in that process.
What is a commercial invoice?
A commercial invoice is a customs document used in international shipping to declare what you are sending, its value and who is involved in the sale.
It acts as proof of sale and helps customs authorities work out the duties, taxes and tariffs due on your goods. A clear, accurate invoice keeps your shipment moving and lowers the risk of hold-ups at the border.
Once you know what a commercial invoice is, the next step is getting the detail right. Customs relies on this information to verify your shipment and calculate what you owe.
What to include on a commercial invoice
A complete commercial invoice pulls together the details customs needs to clear your goods. Every invoice should include:
- seller details, such as your business name, address and contact information as the exporter
- buyer details, including the importer's name, delivery address and any import license number
- a goods description with Harmonised System (HS) codes and the country of origin
- quantity and value, covering the unit price, total value, currency and payment terms
- shipping terms, including the shipping date, method, Incoterms and freight or insurance costs
Getting each field right the first time helps you avoid extra inspections, fines and delays.
Commercial invoices are easy to confuse with other documents you send during a sale. Knowing the difference helps you pick the right one for each stage.
Commercial invoice vs proforma invoice
A proforma invoice is a preliminary document you send before a sale is confirmed. It gives the buyer an estimate of costs, so they can arrange payment or finance. You can read more in this proforma invoice guide.
A commercial invoice is the final document that confirms the sale and travels with your goods through customs. A regular invoice, by contrast, requests payment for a domestic sale and carries no customs detail.
Both documents record a sale, but they do different jobs. Choosing the right one keeps your shipments compliant and your records tidy.
Commercial invoice vs regular invoice
The main difference between commercial invoices and regular invoices is their purpose and the information you need to include. Knowing when to use each helps you avoid shipping delays and compliance issues. In New Zealand, the New Zealand Customs Service uses commercial invoices to assess duties and clear goods at the border.
A commercial invoice is built for international shipping. It carries HS codes, country of origin and customs declarations, and serves as official proof of sale for border authorities.
A regular invoice suits domestic sales and everyday billing. It focuses on payment terms and standard transaction details, and it doesn't need customs information. For a wider view, see what an invoice is and how it works.
Using the correct invoice type helps you stay compliant with the New Zealand Customs Service and overseas customs authorities, reduces shipping delays and protects your business from penalties.
Creating a commercial invoice is straightforward once you have your details together. If you're new to billing, this guide to invoicing covers the basics, and the steps below meet customs requirements.
How to create a commercial invoice
Work through the 5 steps below to prepare an accurate, customs-ready invoice.
- Gather your details, including product descriptions, quantities, unit prices, total value, country of origin, and your buyer and shipping information.
- Choose your format, whether that's accounting software like Xero, a shipping carrier template, or your own spreadsheet with all the required fields.
- Complete the invoice, labelling it clearly as a commercial invoice, adding a unique reference number, and using the shipment date for customs records.
- Review and verify every field, checking that descriptions match the shipment, prices are correct and HS codes are accurate.
- Create copies for your records and send the originals with your shipment, so you have documentation for any customs or accounting queries.
Handling commercial invoices is one part of selling overseas. The right tools make the rest of your international admin easier too.
Manage your international invoicing with Xero
When you sell across borders, you juggle customs paperwork, currencies and payment terms. Xero brings that admin into one place, so you can send professional invoices and see what you're owed across markets.
With multi-currency accounting, you can invoice, get paid and report in the currencies your customers use. Set your business up for international growth and get one month free.
FAQs on commercial invoices
Here are answers to some frequently asked questions about commercial invoices for international shipping.
What is the difference between an invoice and a commercial invoice?
You use a commercial invoice for international shipping and customs clearance. You use a regular invoice for domestic sales and collecting payment.
Who issues a commercial invoice?
You issue it as the seller or exporter. You then provide it to the buyer and your shipping carrier for customs processing.
Can I create my own commercial invoice?
Yes, you can create your own using accounting software, a carrier template or a spreadsheet. Just make sure it includes every required field.
Is a commercial invoice a legal document?
Yes, it's a legally binding record of the sale and a customs declaration. Inaccurate details can lead to penalties or rejected shipments.
What happens if my commercial invoice has errors?
Errors can cause customs delays, extra fees or a rejected shipment. Check every field before you ship to keep your goods moving.
Related Terms
Learn more about commercial invoices
Handy resources
Advisor directory
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Your guide to invoicing
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Online invoicing with Xero
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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.