What is a commercial invoice?
A commercial invoice is the document the seller issues to the buyer for goods shipped internationally. It is both a bill and a customs document: customs authorities use it to check what the goods are, what they are worth and where they come from, and to calculate duty and import VAT. It is one of the core documents for every import, alongside the packing list and the transport document.
Core principle: Customs starts from the commercial invoice. If the invoice is vague, wrong or doesn’t match the other documents, the goods wait.
What a commercial invoice should include
| Field | What to enter |
|---|---|
| Seller and buyer | Full names and addresses, plus VAT and EORI numbers where available |
| Consignee | Where the goods are delivered, if different from the buyer, for example your fulfilment centre |
| Invoice number and date | A unique reference for the shipment |
| Goods description | A specific description per line, such as “women’s cotton T-shirts”, not “apparel” or “samples” |
| HS code | At least six digits per line |
| Quantity and unit price | Per line, with the total value and currency |
| Country of origin | Where each product was made, which may differ from where it was shipped |
| Incoterm | The rule and named place, for example “FOB Shanghai” or “DAP Waredock warehouse, Poland” |
| Weights and packages | Net and gross weight and number of cartons, matching the packing list |
| Reason for export | Sale, stock transfer, sample, return or repair |
Commercial invoice vs pro forma invoice
When there is no sale
A commercial invoice records a sale. When goods cross a border without being sold, for example when a UK brand moves its own stock to an EU fulfilment centre or sends free samples, a pro forma invoice is used instead. It still needs a realistic value, because customs duty and import VAT are charged on the value of the goods, not on the price paid. A value of zero or “no commercial value” is not accepted for stock that will be sold.
Why the invoice value matters
EU customs value is normally based on the transaction value on the invoice, plus transport and insurance costs up to the EU border. Import VAT is then calculated on the customs value plus duty and onward transport. Undervaluing goods to reduce duty is customs fraud, and goods can be seized and penalties issued. It also creates problems later, because the importer can only reclaim the import VAT actually declared.
Preferential origin on the invoice
Under many trade agreements, the exporter can claim reduced or zero duty by adding a statement on origin to the invoice. For example, under the EU–UK Trade and Cooperation Agreement, goods that meet the rules of origin qualify for zero duty when the invoice carries the agreed statement. Goods that were only shipped through the UK, not made there, don’t qualify.
Common mistakes
- Vague descriptions such as “accessories”, “parts” or “gifts”, which also fail EU advance cargo checks under ICS2
- Values, quantities or weights that don’t match the packing list
- Missing country of origin, or origin confused with the country of shipment
- No Incoterm, or an Incoterm without a named place
- Marking commercial stock as a gift or sample
Example: A US brand ships 2,000 hoodies to its fulfilment centre in the Netherlands. The invoice lists “men’s cotton knitted hoodies, HS 6110.20”, 2,000 units at $18, origin Bangladesh, Incoterm DAP Waredock warehouse, Netherlands, and the brand’s NL EORI number. The customs broker can declare the goods from the invoice alone, and the shipment clears the same day.
For the full import process, read Selling in the EU from outside the EU: VAT, EORI and stock.
Frequently asked questions
Is a commercial invoice required for imports into the EU?
Yes. Customs needs an invoice, or a pro forma invoice where there is no sale, to establish the value and description of the goods.
What is the difference between a commercial invoice and a packing list?
The invoice states value and terms of sale. The packing list shows how goods are packed, by carton, quantity and weight. Customs checks that the two match.
Can I ship stock to my own EU warehouse without an invoice?
No. A transfer of your own goods still needs a pro forma invoice with a realistic value for customs.
Does the invoice have to be in a specific language?
English is generally accepted by EU customs, but authorities can ask for a translation.
