What is a Commercial Invoice?
Definition of a Commercial Invoice
A commercial invoice is legal proof that a transaction took place for example, in export and import documentation. These documents may be used by customs authorities to assess applicable taxes and duties.
The commercial invoice is a request for payment. It is sent from the seller to the buyer. The payment is for the goods provided as agreed in the sales contract.
The commercial invoice is an important document for Customs or border officers. It shows that the buyer and seller agreed on the price for the goods or services listed on the invoice.
Let’s look at what is required and included in this document.
The commercial invoice
A commercial invoice must include:
1) Details of the seller
2) Details of the buyer
3) Date of the transaction
4) Whether VAT is applicable and at which rate
5) Details of goods including item numbers
6) Total payable incl Tax (and separately the VAT if applicable).
Information about the goods
The pro-forma invoice
A pro-forma invoice is a statement provided by the seller for goods to be provided by seller. The proforma invoice can be used in different ways. It can be used as a quote. It can also be requested by the buyer to get an import permit.
Additionally, it can be used to raise money or check the details on the commercial invoice. It is not in itself sufficient for an import or export clearance to happen.
Types of commercial invoices
The exporter must produce a variety of different invoices depending on import customs requirements. Because the export invoice is of such importance to the overseas Customs authorities, it is they who insist on a particular format.
Five types of Commercial invoices:
- Standard commercial invoice.
- Commercial invoice with a declaration.
- Commercial invoice requiring third party verification.
- Consular invoice.
- Specific Customs invoice.
Frequently asked questions
Is a commercial invoice a VAT invoice?
VAT invoices serve a specific purpose. They show the VAT that can be claimed and the VAT that needs to be paid.
What is the difference between a commercial invoice and a regular invoice?
What Is The Difference Between a Commercial Invoice and an Invoice? An invoice is a bill from a business after delivering a product or service, showing the sale and asking for payment. A commercial invoice, on the other hand, is a type of invoice used for international deliveries.
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