Commercial invoice against tax invoice
These get conflated because most accounting systems produce one document called an invoice and expect it to do everything. It cannot. A commercial invoice is a customs valuation document; a tax invoice is evidence for a tax authority.
Cross-border, the shipment needs a commercial invoice. If the sale also carries recoverable tax and your buyer intends to reclaim it, they need a tax invoice too, in whatever form their jurisdiction prescribes. Exports are commonly zero-rated, in which case the tax invoice shows zero and says why.
| Commercial Invoice | Tax Invoice | |
|---|---|---|
| Read by | Customs at destination. | A tax authority, and your buyer's accountant. |
| States | Transaction value, Incoterms, HS codes, origin. | Tax charged, rate, and both parties' tax numbers. |
| Required fields | Set by customs practice. | Prescribed by the tax jurisdiction. |
| On exports | Always needed for commercial goods. | Often zero-rated, and must say so. |
| Corrections | Reissue, or amend the entry. | Credit note. |
Why exports usually show no tax
Most jurisdictions zero-rate or exempt exported goods, on the principle that tax belongs where the goods are consumed. The important part is that zero-rated is not the same as out of scope: you generally have to state the zero rate and often the legal basis for it, and you have to be able to evidence that the goods actually left. Proof of export — the transport document — is what supports the zero rating in an audit.
Your buyer's tax number is not decoration
Where the destination operates a VAT or GST system and your buyer intends to reclaim, their registration number generally has to be on the document. A missing or wrong number can invalidate their claim, and you will hear about it. Ask for it at order stage rather than at invoicing.
The primary customs valuation document: what was sold, to whom, on what terms, and for how much.
Invoice showing the tax charged on a supply, in the form required for the buyer to reclaim input tax.
+Can one document be both?
Often yes, if it carries everything both readers need: HS codes, origin and Incoterms for customs, plus tax numbers and the tax treatment for the tax authority. Many exporters issue one combined document. It only works if nothing is missing for either audience.
+Do I charge tax on an export?
Usually not, but the rule is set by your own jurisdiction rather than the destination's, and the conditions for zero-rating vary. This is a question for your accountant, not for a shipping document.
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