What is a Commercial Invoice?

What is a commercial invoice? How to make a commercial invoice? Issuing a commercial invoice has become quite easy, especially with the widespread use of e-commerce. However, some basic information will enable you to issue an accurate and complete invoice.

Type of Invoice: Indicate that it is a commercial invoice.

A brief explanation of why the invoice was issued (for example: "Invoice for the sale of product X").

Date: The date the invoice was issued.

Invoice Sequence: The serial and sequential number of the invoice.

Vendor Information: Information such as title, address, and tax ID number.

Buyer Information: Information such as title, address, and tax ID.

Goods/Service Information: Information such as name, quantity, unit price, total amount, tax rate, and amount of goods or services.

Payment Method: Payment method such as cash, credit card, or money order.

Due Date: The date the payment is due.

Signature: Signature and stamp of the authorized person.

What is the Information Required in a Commercial Invoice?

If we are going to give information on how to fill out a commercial invoice, the basic information that should be included in a commercial invoice is as follows

Seller and buyer information: Information such as title, tax ID number, and address.

Invoice date and sequential number: The date the invoice was issued and the sequential number in the seller's system.

Goods/Services Information: Name, quantity, unit price, total amount.

Taxes: Applied taxes such as VAT, and excise tax.

Payment method and term: Payment method such as cash, credit card, etc., and due date.

Note: The content and format of the invoice may vary depending on the country's tax laws.

How to Issue a Commercial Invoice?

The basic information required on this invoice is listed above. However, in some cases, additional information may be required. For example, in export transactions, information such as country of origin and customs tariff number should also be specified. 

Country of origin, i.e. the country where the good was produced, Customs tariff number (GTIP), the code used for customs taxation of the good. Export license, Export license number if required. Payment terms (INCOTERMS), i.e. information such as delivery terms used in international trade such as FOB, and CIF.

Electronic Issuance: Nowadays, commercial invoices can be easily issued electronically thanks to e-invoicing systems.

Entering the Information Correctly: All information must be entered correctly and completely. Especially in customs procedures, incorrect or incomplete information can cause major problems.

Compliance with Legal Regulations: It must be issued by the applicable tax legislation and other relevant legislation.

Consistency with Accounting Records: Invoice information must be consistent with the accounting records of the business.

How is a Commercial Invoice Different from a Basic Invoice?

The key difference between a basic invoice and a commercial invoice is that the commercial invoice is subject to the buyer's approval. In the case of a commercial invoice, the buyer can notify the seller if he or she does not accept the invoice or thinks that changes need to be made to it. This is not the case with a basic invoice. This allows for greater trust and transparency between the parties, especially in large commercial transactions.

If we talk about it from a legal point of view;

Commercial Invoice: A commercial invoice is a contract. The buyer's approval means that the contract is accepted. This is used as important evidence in potential legal disputes.

Basic Invoice: The basic invoice is usually used for small transactions and is not as binding as a legal contract.

What are Commercial Invoices Used for?

Commercial invoices have many uses:

Accounting: Used to record the income and expenses of businesses.

Tax declaration: Used as the basic document for calculating taxes such as income tax and VAT.

Customs clearance: It is one of the documents required for products to pass through customs.

Trade disputes: Used as evidence in disputes that may arise between the parties.

How to Cancel a Commercial Invoice?

Cancellation of a commercial invoice may be necessary because there is an error in the information contained in the invoice, the transaction did not take place, or other reasons. Cancellation is usually done by issuing a correction invoice. However, the process can be complicated by e-government applications and the different systems used by businesses.

The general steps for this are as follows;

Determine the Reason for Cancellation: It is important to identify why the invoice needs to be canceled.

Issue a Correction Invoice: A new invoice is issued correcting the canceled invoice. In this invoice, the information of the canceled invoice is shown and the relevant corrections are made.

Notify Interested Parties: Both the buyer and the seller should be informed about the invoice cancellation.

Updating Accounting Records: Necessary corrections should be made to the accounting records of the business.

What Should Be Considered When Issuing a Commercial Invoice?

Here are some important points to consider when issuing a commercial invoice:

Compliance with Legal Regulations: Invoices must be issued by all legal regulations.

Clarity and Clarity: All information must be expressed clearly and understandably.

Accuracy: All information must be accurate and up-to-date.

Regularity: The invoice must be organized and legible.

Retention Period: Commercial invoices must be kept for the legal period.

In conclusion, a commercial invoice is a document issued when a sale of goods or services takes place and contains all the information regarding the sales transaction. The commercial invoice has an important place in both domestic trade and international trade. Issuing a correct and complete commercial invoice is of great importance for businesses to fulfill their legal obligations and prevent possible problems.