Commercial invoice
A commercial invoice is a customs document that lets SARS assess duties and VAT on goods you import or export.
Published Wednesday 12 August 2026
Table of contents
Key takeaways
- A commercial invoice is a legal document used in international trade that describes goods being shipped and their value, which SARS Customs uses to assess duties and VAT on imports.
- Accurate details on the commercial invoice, including HS tariff codes, declared values, and Incoterms, help speed up customs clearance and reduce the risk of delays or penalties.
- A commercial invoice must include seller and buyer details, a full description of goods, HS codes, quantity, weight, unit price, total value, currency, Incoterms, country of origin, and destination port.
- Unlike a regular invoice used for domestic sales, a commercial invoice is a required customs document that must be submitted to SARS Customs when shipping goods across borders.
What is a commercial invoice?
A commercial invoice is a document that records the details of a sale between a seller and a buyer when goods cross international borders. SARS Customs, a division of the South African Revenue Service, uses this document to determine the duties and VAT payable on imported goods.
When you export from or import into South Africa, the commercial invoice forms part of your customs declaration. It provides SARS Customs with the information needed to classify goods under the Harmonised System (HS), calculate applicable duties, and verify the declared value. Without a correctly completed commercial invoice, your shipment may be delayed or flagged for inspection.
When is a commercial invoice required?
A commercial invoice is required whenever physical goods are shipped across international borders for the purpose of sale. This applies to both imports into South Africa and exports from the country. If you're sending goods to a customer overseas or receiving products from an international supplier, you'll need to provide a commercial invoice as part of the customs documentation. Samples, gifts, and goods with no commercial value may use different documentation, but anything sold commercially requires a full commercial invoice.
What information goes on a commercial invoice?
A commercial invoice must contain enough detail for SARS Customs to classify, value, and clear your goods. Missing or incorrect information can result in delays, additional inspections, or penalties.
- Seller or exporter details, including business name, address, SARS customs client number, and VAT number if registered
- Buyer or importer details, including business name and address
- Full description of the goods, including materials and intended use
- HS tariff code for each item
- Quantity of each item
- Net and gross weight
- Unit price for each item
- Total value of the shipment
- Currency (ZAR or the transaction currency)
- Incoterms defining the responsibilities of buyer and seller
- Country of origin for each product
- Port of destination
Why accurate information matters
Errors on a commercial invoice can trigger delays at South African ports, documentary inspections, or penalties from SARS. In 2025, SARS asked traders to include invoice data in all electronic customs declarations. Declarations submitted without this data face a higher likelihood of documentary inspection, which can slow down the clearance process. Accurate HS codes, values, and payment terms help your goods clear customs without unnecessary hold-ups.
How to create a commercial invoice
Follow these 5 steps to create a commercial invoice that meets SARS Customs requirements.
Step 1: Gather the required information
Collect all the details you'll need before you start. This includes your SARS customs client number, your VAT number if you're registered, the buyer's details, a full description of the goods, HS tariff codes, quantities, weights, and the agreed Incoterms. Having everything ready upfront helps you avoid errors and omissions.
Step 2: Choose your format
You can create a commercial invoice using invoicing software, a spreadsheet template, or a purpose-built form. There's no single required format, but your invoice must include all the information SARS Customs needs. Using software that lets you send invoices with consistent formatting can help you maintain accuracy across shipments.
Step 3: Complete the invoice
Enter the seller and buyer details, describe each product clearly, and include the HS code for every item. List quantities, unit prices, and the total value. Specify the currency, Incoterms, country of origin, and destination port. Make sure the declared value reflects the actual transaction value, as undervaluing goods is illegal.
Step 4: Review and verify
Check every field before you finalise the invoice. Confirm that HS codes match the goods being shipped, that quantities and values are correct, and that the invoice aligns with any packing list or other documentation. The way you record the sale will depend on whether you use cash or accrual accounting. Mistakes found during customs clearance can result in delays or penalties.
Step 5: Create and store copies
Produce multiple copies of your commercial invoice for the buyer, the shipping carrier, and customs authorities. In South Africa, customs records must generally be kept for at least five years under the Customs and Excise Act, in line with SARS recordkeeping guidance for imported and exported goods. Check the SARS website for the latest requirements.
Types of commercial invoices
Depending on the nature of your shipment, you may use one of several types of commercial invoices.
- Standard commercial invoice: the primary document used for completed sales of goods shipped internationally, containing all required details for customs clearance.
- Proforma invoice: a preliminary, non-binding document issued before a sale is finalised, often used for quotations or to accompany goods sent for approval. It's not a demand for payment and won't be used to calculate duties.
- No commercial value declaration: used for samples, prototypes, or items sent without a sale, indicating that the shipment has no transaction value. Duties may still apply based on the item's assessed value.
Commercial invoice vs regular invoice
A commercial invoice and a regular invoice serve different purposes, even though they may look similar. Understanding the distinction helps you use the right document for the right situation when managing your accounts receivable.
- Purpose: a commercial invoice is used for customs clearance in international trade, while a regular invoice is a request for payment in a domestic or international sale.
- Required information: commercial invoices must include HS codes, country of origin, Incoterms, and other customs-specific details that regular invoices don't require.
- Use cases: commercial invoices accompany goods crossing borders, while regular invoices are used for billing customers regardless of whether goods leave the country.
- Legal requirements: SARS requires a goods declaration supported by a commercial invoice to clear imported and exported goods. Regular invoices are not submitted to customs authorities.
A packing list is a separate document that itemises the contents of a shipment, including the number of packages, their dimensions, and their weights. It must match the commercial invoice exactly. Discrepancies between the two can trigger inspections or delays at customs.
Common mistakes to avoid
Avoiding common errors on your commercial invoice can help your goods clear SARS Customs without delays or additional costs. Learning how to make an invoice correctly is a good starting point.
- Vague goods descriptions: using generic terms instead of specific product names and materials can lead to classification errors and customs queries.
- Incorrect HS codes: the wrong tariff code can result in incorrect duty and VAT calculations, penalties, or goods being held at the border.
- Undervaluing goods: declaring a value lower than the actual transaction price is illegal and can result in fines, seizure of goods, or criminal prosecution.
- Incomplete fields: leaving required fields blank, such as country of origin or Incoterms, can delay clearance and trigger documentary inspections.
- Contradictions between the invoice and packing list: mismatched quantities, weights, or descriptions across documents raise red flags for customs officials.
Simplify your invoicing with Xero
Xero's invoicing tools help you create professional invoices with consistent formatting and accurate details. You can customise invoice templates, track payments, and keep your financial records organised in one place. If you're ready to see how Xero can support your business, get one month free and explore the platform.
FAQs on commercial invoices
Here are answers to common questions about commercial invoices in South Africa.
Do I need a commercial invoice for every international shipment?
You need a commercial invoice for any shipment of goods being sold across international borders. Samples, gifts, or items with no commercial value may require different documentation, but anything sold commercially needs a full commercial invoice.
Who provides the commercial invoice?
The seller or exporter is responsible for creating and providing the commercial invoice. It's typically prepared at the time of shipment and included with the customs documentation.
Can I create my own commercial invoice?
Yes, you can create your own commercial invoice using invoicing software, a template, or a custom form. There's no prescribed format, but you must include all the information required by SARS Customs.
How many copies of a commercial invoice do I need?
You'll typically need at least three copies: one for the buyer, one for the shipping carrier, and one for customs authorities. Some shipments may require additional copies depending on the destination country's requirements.
What is the difference between a commercial invoice and a proforma invoice?
A proforma invoice is a preliminary document issued before a sale is finalised, often used for quotations. A commercial invoice is a final document that accompanies goods being shipped and is used for customs clearance and payment.
What happens if my commercial invoice has errors?
Errors can delay customs clearance, trigger inspections, or result in penalties from SARS. If you discover a mistake after submission, contact your customs broker or SARS to correct the declaration as soon as possible.
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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.