What is a Proforma Invoice?

Proforma Invoice
A Proforma Invoice declares a seller’s commitment to providing goods or services at a certain price. Proforma Invoices are similar to estimates; they are not a request for payment and are not binding on either side.

Proforma Invoices outline specific goods or services and their prices to customers. They are not invoices; they are supplied for information only, so customers know what they can expect to pay for the items described.

Proforma invoices are often treated as estimates. They are also used to declare the value of goods passing through customs if no commercial invoice is available.

Proforma Invoices don’t need to be included in your accounts, and customers can’t use them to reclaim VAT. If you are VAT-registered, your Proforma Invoices should state ‘This is not a VAT invoice’.

If a Proforma Invoice is accepted and you go on to supply the goods or services, you must then issue a proper invoice for tax purposes.

Still have a question?

If you still have questions regarding Proforma Invoices and when to use them, don’t hesitate to ask.