What is an invoice and what is it for

Having decided to follow the complicated path of international trade, any businessman and merchant must be well versed in export-import operations. This includes a clear understanding of what an invoice is, what its functions are, and how to fill it out correctly. We will talk about this in the article.

An invoice is the main trade document that accompanies any cargo sent abroad. It contains detailed information about transactions.

Who issues the document

The invoice is issued by the sender, any employee of the enterprise or firm who has the exclusive right to send goods and material values ​​abroad, and also has the right to issue and sign accompanying papers. As a rule, invoices are issued in English, which is the main language in world trade. That is why documents should be filled out in English.

An invoice for customs is issued at the stage of sending the cargo with subsequent transfer to a partner abroad.

What is an invoice for?

The procedure for customs clearance of goods implies the presence of a wide package of documents, the most important of which is the invoice. The document indicates the fact of shipment of material values ​​and the recipient’s obligation to pay for the cargo, in accordance with clearly stated agreements (except for situations with prepayment). The invoice also records the amount to be paid to the buyer for goods or services, the number of units of goods, the details of the parties to the transaction, etc.

A type of invoice is a proforma invoice, the data on the delivery of goods in which are of an intermediate nature, that is, during the transaction, for example, the cost of the cargo or the article numbers of specific models of goods may still change.

How to fill out an invoice correctly

Correctly filling out a customs invoice is the most important moment for the success of any foreign economic operation. It not only confirms the fact of sending trade and material values, but also contributes to delivery within the agreed time. Any errors in filling out the document can cause a delay in the shipment at customs, and therefore, a deterioration in partnership relations between the parties to the transaction. The legislation of Ukraine does not provide clear criteria for how to fill out an invoice form. In any case, a correctly drawn up document consists of the following elements:

• invoice number and date of issue;
• date of completion of the delivery of the goods or services;
• name, addresses of the participants in the trade agreement;
• details for payment of the foreign economic agreement;
• terms of delivery, according to INCOTERMS 2020;
• name and description of the goods (how many units of the goods, dimensions, color);
• net price, tax rate, gross value;
• total amount to be paid including tax, expressed in figures and in words.

A commercial invoice must be drawn up in four copies (original + 3 copies), either by hand or in printed form, certified by the signature of the sender. Filling out an invoice is allowed both on the sender’s letterhead and on a simple A4 sheet.

Each of the four documents is used for its intended purpose: one is placed in the parcel, the second is placed in a pocket in a pair with the waybill, one invoice goes to the supplier and the recipient, and the customs officer keeps one.

If the seller or buyer has doubts about how to make an invoice, it is better not to rely on “just in case”, but to consult with specialists.

In what language is an invoice for payment filled out?

Tax specialists note: documents in a foreign language that serve as the basis for accounting entries must be translated into the specified language. Based on this, there are two ways to solve the issue: either immediately translate the invoice into Ukrainian and English, or provide an authentic translation of a foreign-language document into Ukrainian.

How to check the document

The invoice is subject to verification. A competent merchant will always pay attention to the following points:

• Delivery terms, according to INCOTERMS-2020
• Completeness of the characteristics of the goods (in case of incomplete data, the document must be amended).
• Does the invoice contain the cost of the goods in the currency of a certain country.
• Presence of prices for each product and their total cost.
• Presence of the consignor’s signature.

Below you can download and print the invoice template:

• Invoice form in English. Download (doc)