Proforma Invoice Template
A proforma invoice is a preliminary bill sent to a buyer before goods are delivered or work begins. It states what will be provided and at what price, so the buyer can arrange payment, approvals, or customs paperwork. Unlike a final invoice, a proforma is not a demand for payment and should not be entered into accounting books as one.
When to use this
- When a customer requests a written quote that also works as a payment request
- When the buyer needs an advance or deposit before you start work
- When goods cross a border and the buyer needs a document for customs clearance
- When internal approvals at the buyer's company require a formal cost breakdown first
- When you want to lock in pricing and quantities before issuing the final invoice
Key fields to include
- Buyer and seller names, addresses, and contact details
- Line items with quantities, unit prices, and currency
- Total amount due, including any estimated taxes or shipping
- Payment terms and deadline for the advance or full payment
- Clear label stating this is a proforma invoice, not a tax invoice
- Reference to the final invoice that will follow once goods or services are delivered
Frequently asked questions
Is a proforma invoice legally binding?
A proforma invoice is generally not a binding contract by itself — it is an estimate or offer. It becomes binding only if both parties agree it forms part of a contract, such as a signed purchase order referencing it. Always check local rules for your industry.
Can I use a proforma invoice to claim VAT or tax?
No. A proforma invoice is not a tax invoice, so neither the buyer nor the seller should use it to claim input tax. A proper final invoice must be issued once the goods or services are delivered before any tax claim can be made.
Does a proforma invoice need an invoice number?
It is good practice to number proforma invoices for tracking, but they should use a separate numbering sequence from your official invoices (for example, PRO-001). This keeps your accounting records clean and avoids confusion with tax documents.
More use cases
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