Proforma Invoice
A proforma invoice is a preliminary bill sent before goods or services are delivered.
A proforma invoice states what will be provided and at what price, so the buyer can arrange payment, approvals, or customs clearance. It is not a demand for payment and should not be recorded as a sale in accounting books. A final commercial or tax invoice follows once delivery is complete.
Example
An exporter sends a proforma invoice so the importer can open a letter of credit before shipment.
Related terms
Frequently asked questions
Can a buyer claim tax on a proforma invoice?
No. A proforma invoice is not a tax invoice, so it cannot be used to claim input tax. Only the final invoice issued after delivery supports a tax claim.
Should proforma invoices share numbering with real invoices?
No — keep a separate sequence (for example, PRO-001). Mixing them with official invoice numbers creates confusion in accounting and tax records.
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