Proforma invoice
A proforma invoice is a preliminary document sent before a sale is finalised. It is not a demand for VAT and does not replace a VAT invoice.
When to use a proforma invoice
- A customer needs a document to raise a purchase order or arrange payment
- Goods are being imported or exported and customs or the buyer needs a commercial summary
- You want written confirmation of the proposed price, quantity and terms before work starts
Proforma vs VAT invoice
A proforma invoice is not a VAT invoice. Once the supply takes place, issue a proper VAT invoice if you are VAT registered. Mark the proforma clearly as “proforma” so it cannot be confused with a tax invoice.
Related tools and guides
Frequently asked questions
Is a proforma invoice legally binding?
A proforma invoice is generally a preliminary document, not a final demand. Whether it is binding depends on the contract and the wording. Treat it as a summary of proposed terms, not a VAT invoice.
Can I charge VAT on a proforma?
You can show the expected VAT, but the proforma itself is not a VAT invoice. The actual VAT invoice is issued when the supply takes place.