Proforma invoice vs commercial invoice for import and export
What a proforma invoice is, how it differs from a commercial invoice, and which one customs, banks and buyers need when you ship goods abroad.
If you sell goods across borders, you will meet two documents with similar names: the proforma invoice and the commercial invoice. They are issued at different moments and serve different people. Mixing them up can delay a payment or hold goods at customs.
Proforma invoice: before the sale is final
A proforma invoice is a preliminary bill sent before the goods are shipped. It tells the buyer exactly what they will receive and what it will cost, so they can:
- Arrange payment, often in advance or through a letter of credit.
- Apply for an import licence or permit.
- Get approval or financing from their bank or management.
A proforma invoice is not a demand for payment and is not recorded in your accounts as a sale. It usually carries a validity date, because prices and exchange rates change.
Commercial invoice: the document that travels with the goods
The commercial invoice is the final invoice for an international sale. Customs uses it to check the value, origin and description of the goods and to calculate duties and taxes. It is also the document the buyer pays against.
Side by side
| Proforma invoice | Commercial invoice | |
|---|---|---|
| When | Before shipment | At shipment |
| Legal value | Offer, not a tax document | Final invoice, used by customs |
| Main users | Buyer, buyer's bank | Customs, buyer, carrier |
| Can change | Yes, until final | No, correct it with a credit note |
What a commercial invoice should show
- Exporter, importer and, if different, the consignee who receives the goods.
- A precise description of each item, quantity, unit price and total value.
- The Incoterm, such as EXW, FOB or CIF, which says who pays for transport and insurance.
- The country of origin and the ports of loading and discharge.
- The currency of the sale.
Many customs offices also ask for HS codes and weights. Add them to the item description if your shipment needs them.
Prepare both documents
Send a preliminary invoice before delivery, for advance payment or customs.
Start with the proforma. When the buyer confirms and the goods are ready, open it and choose "Convert to", then "Commercial invoice". Then add a packing slip for the boxes. You can also read our guide on how to write an invoice.