Make a proforma invoice
Priced like an invoice, sent before the goods, and honest about not being a tax invoice.
A proforma invoice is what a customer asks for when they need the exact figures before you supply: to release an advance payment, to raise an internal purchase approval, or to give to a freight agent. It looks like an invoice and totals like one, but it is not a demand for payment and it cannot be used to claim tax, which is why this one says so in the terms.
How to make a proforma invoice
- 1
Choose Proforma invoice
It carries a validity date, payment terms and a delivery line, which are the three things the customer will ask about.
- 2
Price it exactly as you will bill it
The point of a proforma is that the real invoice matches it. Include the tax and the delivery charges.
- 3
Set the validity and send it
A validity date protects you from a price change, and it prompts the customer to act.
Why the wording matters
A proforma that does not say it is a proforma gets entered as a purchase invoice by somebody, and then the tax on it gets claimed. Printing the distinction on the document prevents an awkward conversation with an auditor.
The real invoice afterwards
Once you supply, the tax invoice with the proper VAT or GST treatment comes from the invoice generator.
Frequently asked questions
Is a proforma invoice legally binding?+
It is an offer rather than a demand. It does not create a debt, and it is not a tax invoice, which is why it must not be used to claim input tax.
How is it different from a quotation?+
A quotation prices work that is still being considered. A proforma prices an order that is essentially agreed, in the exact shape the invoice will take.
Can it be used for customs?+
Commonly, yes, for valuation before shipment. Your freight agent will tell you exactly what the destination expects.
Is my pricing uploaded?+
No. It is all generated in your browser.