What is a proforma invoice?
Updated
A proforma invoice is a preliminary invoice sent before goods are delivered or a sale is final. It shows the buyer what they will be charged, so they can approve the purchase, arrange payment or apply for an import licence. It is not a demand for payment and is not recorded as a sale for tax.
When is a proforma invoice used?
- International trade: importers often need one to apply for import licences, letters of credit or customs pre-clearance.
- Advance payments: when the buyer must pay before the goods ship.
- Internal approval: when the buyer’s finance team needs an exact figure before raising a purchase order.
Proforma invoice vs invoice vs quote
| Quote | Proforma invoice | Invoice | |
|---|---|---|---|
| Sent | Before the deal | After agreement, before delivery | After delivery |
| Payment requested | No | Sometimes (advance) | Yes |
| Recorded for tax | No | No | Yes |
| Can change | Yes | Yes, before the final invoice | No (use a credit note) |
What does a proforma invoice include?
The same details as a normal invoice (your details, the buyer’s details, items, quantities, prices, expected tax and total) plus a clear “Proforma Invoice” title. It usually has its own number series and an expiry or validity date.
How do I make one?
Open the free invoice generator, change the document title to Proforma Invoice, and add a “Valid until” field under Invoice details. When the sale goes ahead, change the title back to Invoice, give it a number from your normal series, and send the final version.
Make one now: the free invoice generator creates a PDF invoice in your browser, with no sign-up.
Questions people ask
Is a proforma invoice legally binding?
No. It is a good-faith estimate of the final invoice. The sale is only confirmed when the buyer accepts it, and the final commercial or tax invoice is issued later.
Do I charge tax on a proforma invoice?
You can show the expected tax so the buyer knows the full cost, but the tax is due on the final invoice, not on the proforma.