What is a commercial invoice?

When shipping goods overseas, paperwork matters. You’ll need to create commercial invoices when conducting any sort of international trade, such as sending products to customers outside Australia.

In this blog, we’ll outline exactly what a commercial invoice is and how it differs from other important documents. There’s also a step-by-step guide for filling one in, and details about the advanced invoicing features available with Wise Business.

Table of contents
What is a commercial invoice for shipping? How to fill out a commercial invoice for shipping Commercial invoice template and sample Create, send, and manage business invoices with Wise Business Get international shipping right

Sign up for the Wise Business account! 🚀

What is a commercial invoice for shipping?

A commercial invoice is a legal document that facilitates international shipments and trade. It acts as both a bill of sale and a customs declaration. This makes it different from standard domestic invoices that primarily serve as a way to request payments.

When sending products overseas from Australia, a commercial invoice is one of the key export requirements¹. The document provides customs authorities with detailed information about goods — value, product description, weight, shipping terms etc. This helps them to verify that goods are legitimate and calculate any duties or tax.

They are typically used by:

• Manufacturers exporting goods to other countries
• Retailers importing goods from other countries
• E-commerce companies shipping products internationally
• Businesses sending goods to partners or subsidiaries overseas
• Freight forwarders that receive and ship goods for clients
• Any other business conducting cross-border trades

Purpose of a commercial invoice?

A commercial invoice has multiple functions. First and foremost, it ensures smooth passage of any goods through customs. Australian Border Force uses the information in the invoice, such as the package’s contents and HS codes, to verify it and ensure it meets strict import and export regulations before crossing international borders.

There are also financial and business functions. A commercial invoice serves as a:

• Basis for calculating duties and taxes based on the declared value.
• Legal record of transaction terms between a buyer and seller or exporter and importer.
• Proof of value for any insurance claims if goods are damaged or lost during transit.
• Supporting document for inventory records, export incentives, and tax rebates.

Shipments can be delayed or even rejected at borders without commercial invoices. That’s why it’s vital that you complete them accurately before sending goods overseas.

Difference between a tax invoice and commercial invoice

Both tax invoices and commercial invoices are used to request payments for goods and services. However, tax invoices are primarily used in Australia as a way to comply with Goods and Sales Tax (GST) and VAT rules domestically. In contrast, commercial invoices serve as international trade documents for customs clearance.

• Tax invoices have GST and VAT registration numbers and detailed tax calculations.
• Commercial invoices have HS Codes, Incoterms, country of origin, and other terms related to international shipping.

Businesses in Australia use tax invoices to meet their tax obligations. They are required by law for any sales above 82.50 AUD and must be issued to customers within 28 days on request².

Difference between a commercial invoice and proforma invoice

There’s another document that’s involved in transactions and shipping: a pro forma invoice. This document is simply a preliminary bill. Think of it as a quote or offer — a list of goods or services for a potential transaction. You might use one of these to provide a buyer with a description of goods and estimated costs ahead of a sale. It’s not legally binding.

• Proforma invoices provide complete descriptions of goods (quantities, details etc.), estimated costs, offer validity window, and terms and conditions.
• Commercial invoices include seller and buyer details, description of goods, total value, shipping terms and information.

Pro forma invoices are often used when gathering quotes and estimates for different suppliers, or during the negotiation phase between two parties.

How to fill out a commercial invoice for shipping

There’s quite a bit to get through with a commercial invoice compared to a basic sales document. It’s a good idea to read up on HS codes and Incoterms — things specific to shipping overseas — so you get the right details to complete all the fields accurately.

Here’s a step-by-step guide for the process:

Step 1. Complete your (sender) information

Start by including all of your relevant details. This includes your complete, legal business name, Australian Business Number (ABN) and physical address, as well as your contact details and any relevant registration numbers. These will help customs authorities verify who you are.

Step 2. Fill in the recipient details

Next, fill in all the details for your buyer or supplier. You’ll need to include their full name or business name, address (including postcode and country), and contact info. Make sure this matches what’s on the shipping label exactly. Any discrepancies can cause confusion and issues with shipment or delivery.

Step 3. Add the PO and invoice number and date

It’s easier to track shipments and file your records when you use numbers. Add an invoice number and date of issue. If there’s a purchase number, include this as well to provide context for both parties.

Step 4. Describe goods in detail

Now, a very important part. You need to describe your goods in detail and as accurately as possible. Avoid any vague terms like “machine parts”. Instead, specify exactly what they are, such as “stainless steel automotive brake components”. Add model numbers, too, where applicable, plus the quantity and county of origin.

Step 5: Assign correct codes

HS codes are one of the unique aspects of commercial invoices. The Harmonised System is an international standard used in Australia and overseas. They classify goods and help customs to quickly identify them to determine duty rates. Make sure you include the correct ones — this is a common mistake, so double-check.

Step 6: Declare accurate values

Go through the document and declare the value of each unit before calculating a total value. Always be upfront and honest with these figures. Undervaluing goods or omitting key details is a major red flag for customs and can result in significant delays and fines. Make sure to note down the currency used for the sale, too.

Step 7. Outline terms of sale

You need to include the terms of trade using Incoterms. These are three-letter acronyms that define the responsibilities between you and the buyer or supplier. Common terms of trade include FCA (Free Carrier) and Carriage Paid To (CPT). Also, state the reason for the export, such as sale or gift.

Step 8. Add financial summaries and sign

Finally, include any shipping costs and grand totals, including exchange rates if multiple currencies are involved. Go through one last time to ensure all of your calculations are accurate. When everything’s completed, sign the form and add a company stamp.

Commercial invoice template and sample for shipping

Here’s a sample of what a commercial invoice could look like. It’s for a tech company based in Melbourne shipping products overseas to a customer based in Singapore.

Invoice No: CI-2025-0815

Invoice Date: 15 August 2025

Export Reference: EXP-AU-2025-0456

Exporter/Sender:

Company: ABC Tech Solutions Pty Ltd
Address: Melbourne, Australia
Tel: +61 3 4567 1234
ABN: xx xxx xxx xxx
Email: exports@abctech.com.au

Buyer/Receiver:
Company: XYZ Innovations Ltd
Address: Singapore
Tel: +65 6234 5678
Email: purchasing@xyzinnovations.sg

Ship to:

Digital Innovations Ltd
Logistics Centre
Singapore yyyyyy

Shipment details:

Port of Loading: Melbourne, Australia
Port of Discharge: Singapore
Country of Origin: Australia
Shipping Method: Sea Freight
Departure Date: 15 August 2025
Est. Arrival: 22 August 2025
Reason for Export: Commercial Sale

Goods description:

Item	Description	HS Code	Quantity	Unit Price (AUD)	Total Value (AUD)
1	Wireless Bluetooth Earphones	8518.30.00	500	89.95	44,975

Terms of Sale:

Incoterms: FOB Melbourne
Payment terms: 30 days net
Currency: Australian Dollars (AUD)
Method of Payment: Bank Transfer

Invoice Summary

Total Invoice Value: AUD 44,975

Create, send, and manage business invoices with Wise Business

Managing commercial invoices shouldn’t be a headache. With Wise, you can bill clients at home in Australia and abroad with a full invoicing service. This is included for all Business account users.

To get started, all you need to do is:

1. Create a Wise Business account
2. In the app or on the web, select Request from the home screen
3. Click Create an invoice
4. Enter the details for your commercial invoice, including recipient’s email address
5. Preview the draft in PDF format
6. Click Create and send invoice and Wise will send your invoice directly to the recipient

After it’s sent, you can manage everything from the Invoices section in the Payments tab. Here, you’ll be able to track all the progress using filters, as well as cancel invoices, and download them for your own records.

How to sync Wise Quick Pay with QuickBooks and other tools

Wise helps you get paid faster, too. With Quick Pay, you can include QR codes and payment links to your invoices. And there’s integration with all your favourite invoicing and accounting tools like QuickBooks.

• Add your Wise Quick Pay link or QR code to your invoice templates. Once added, it appears on every invoice — there’s no need to repeat the process.
• When a customer uses these links or codes to pay you, the transaction is tied to a specific invoice number to keep your records accurate.
• You can also paste the Quick Pay URL in QuickBooks and Xero invoices, which integrate with Wise directly so incoming payments show up automatically.

This level of integration is great for record keeping and reconciliation for tax reporting. It also makes it much easier to manage your business finances and cash flow.

Get international shipping right with accurate commercial invoices

A commercial invoice is an essential document that’ll keep your international shipments moving. It provides important information for customs authorities to verify goods and calculate duties and tax. While also doubling as a proof of sale and contract between you and the seller or supplier. Getting the details right will reduce delays and build trust and transparency between both parties.

With Wise Business, you can manage invoices from one easy-to-use platform. You’ll also be able to accept payments in 8+ currencies and keep your records in sync. It’s the smarter way to keep on top of all your cross-border transactions.

Expanding a business globally opens up exciting opportunities, but also new challenges like receiving payments across borders. Hidden foreign transaction fees and hefty currency conversions involved with international payments can eat into your profits and time.

Wise Business serves as a cost-effective solution where you can receive money from around the world at the speed and price of local payments.

Transform the way you receive payments with Wise Business:

• One-time fee of 65 AUD for local account details in 8+ currencies, including AUD, NZD, USD, and more—no recurring fees
• One account to hold, send, and convert money with no hidden fees or exchange rate markups
• Create and send professional invoices directly to your customers through Wise Business
• Create payment links to request money in specific currencies
• Seamlessly receive payments from customers, online sales, or PSPs like Stripe and Amazon.
• Wise is safe and secure - Trusted by 13 million people and counting

Sign up for the Wise Business account! 🚀

---

Sources:

1. DHL - Australia export requirements
2. Business gov au - How to invoice check what type of invoice you need