Sales Invoice vs Commercial Invoice — Key Differences Explained
Published: December 25, 2025
Summary: Learn the key differences between sales invoices and commercial invoices. Understand when to use each type and why they serve different purposes in business transactions.
While invoices are common documents in business transactions, there are different types of invoices used for various purposes. Two commonly used invoices are the sales invoice and the commercial invoice. Though they may seem similar, each type serves a unique purpose. In this blog, we’ll break down the key differences between a sales invoice and a commercial invoice, and when to use each one.
What is a Sales Invoice?
A sales invoice is typically issued when a business sells goods or services to a customer. It is a document that requests payment for the goods or services provided. A sales invoice is used for domestic transactions and often includes the total amount due, taxes, payment terms, and other relevant information such as delivery details.
What is a Commercial Invoice?
A commercial invoice is a document used for international trade. It serves as a customs declaration and includes details of the transaction, such as the description of goods, their value, and the country of origin. Commercial invoices are required for customs clearance and are used to assess duties and taxes for cross-border shipments.
Key Differences Between a Sales Invoice and a Commercial Invoice
- Purpose: A sales invoice is used for domestic transactions, while a commercial invoice is used for international trade and customs.
- Details: A sales invoice includes a breakdown of goods/services sold and payment terms, while a commercial invoice includes customs-related details such as HS codes, country of origin, and trade terms (Incoterms).
- Usage: Sales invoices are used within the same country for goods and services sold, whereas commercial invoices are used for exporting goods internationally.
When Should You Use a Sales Invoice?
Sales invoices are used whenever a business provides goods or services to a customer and expects payment. They should be issued as soon as the goods are delivered or the service is completed. Use sales invoices for domestic transactions within the same country.
When Should You Use a Commercial Invoice?
Commercial invoices are essential for international transactions. If you are exporting goods, a commercial invoice will be required to clear customs. This invoice includes detailed descriptions of the goods, their value, and their country of origin. Commercial invoices also serve as the legal document for determining customs duties and taxes.
How to Create a Sales Invoice or Commercial Invoice with Invozee
Creating both sales and commercial invoices is easy with Invozee. Here’s how:
- Sign up or log in to Invozee.
- Enter your business and client details.
- For sales invoices, list the items sold, their prices, and payment terms. For commercial invoices, include detailed customs information and shipping details.
- Generate and download your invoice in PDF format and send it to your client.
Best Practices for Using Sales and Commercial Invoices
- Sales Invoices: Ensure that payment terms are clear and specify any late payment fees.
- Commercial Invoices: Double-check that all customs-related details, such as HS codes and trade terms, are correct to avoid customs delays.
- Both Types: Always issue invoices promptly and keep accurate records for accounting and tax purposes.
Frequently Asked Questions
Can I use a sales invoice for international transactions? No, you should use a commercial invoice for international transactions to comply with customs regulations.
Do commercial invoices include tax details? No, commercial invoices focus on customs information. Tax details are included in sales invoices for domestic transactions.
How can I create a commercial invoice online? Use Invozee’s platform to easily create and download a professional commercial invoice for your international shipments.
Start creating your professional sales or commercial invoices today with Invozee.