Proforma Invoice vs Commercial Invoice: What's the Difference?

Proforma and commercial invoices look similar but serve very different roles. Mixing them up, especially in exports, can stall payments and customs clearance.

1. What Is a Proforma Invoice?

A proforma invoice is a quote in invoice format. Sellers use it to state prices, terms, and delivery information so the buyer can approve the purchase or arrange an advance payment. It says “this is what you will be billed” but is not yet a demand for payment.

2. What Is a Commercial Invoice?

A commercial invoice is the final, binding bill issued when goods are dispatched or services completed. It carries the final amounts, tax, and terms, and is the key document for customs declarations and the buyer’s accounts.

3. When to Use Each

• Use a proforma for advance payments, deposits, export quotes, and customs valuation in some countries.
• Use a commercial invoice for the actual charge, after the supply happens.

4. The Rule of Thumb

Money moves before the supply? Use a proforma (or accept it alongside a commercial invoice). Money moves after the supply? Use a commercial invoice.

Draft both documents cleanly with the free Invoice Generator, and understand where this fits with our breakdown of estimates, quotes, and invoices.