Document types

Proforma invoice

A proforma invoice is a non-binding quote presented in invoice format, sent before goods or services are delivered, that previews the price and terms but does not create a tax record or a payment obligation.

Applies in: Global

A proforma is used when the buyer needs an invoice-shaped document before the transaction is final. Common cases: requesting an internal purchase order from a buyer's procurement team, declaring goods to customs ahead of shipment, or asking for a deposit before work starts. The format mirrors a real invoice, with line items, totals, and seller details, so it can be processed by the buyer's systems and people.

What makes a proforma different from a regular invoice is what it is not. It does not carry a sequential invoice number, it does not appear in the seller's VAT or GST records, and it does not create an enforceable claim for payment. If the buyer pays against a proforma, the seller still needs to issue a real invoice afterwards so the transaction is recorded correctly for tax.

Mark every proforma clearly as "Proforma invoice" at the top, and give it a separate numbering series from your real invoices so nothing gets confused at audit time.

Proforma invoice vs commercial invoice, quote, and estimate

These four documents get mixed up constantly. The difference comes down to what each one commits you to and where it is used.

DocumentA demand for payment?A valid VAT / tax invoice?Customs clearance document?When it is used
Proforma invoiceNoNoNo: preliminary, it later becomes the commercial invoiceBefore delivery or payment
Commercial invoiceYesYesYes: the document customs assess duties onAt shipment or delivery
QuoteNoNoNoBefore the work is agreed
EstimateNoNoNoA good-faith projection, before the work is agreed

Why a proforma is not a tax invoice. Under Article 226 of the EU VAT Directive (2006/112/EC), a valid VAT invoice must carry a defined set of particulars: a sequential number that uniquely identifies it, the supplier's VAT identification number, and the VAT rate and amount, among others. A proforma deliberately omits the sequential number and never enters the seller's VAT records, which is exactly why it creates no tax liability and lets the buyer reclaim no input tax.

Proforma and customs. The US International Trade Administration describes a proforma as a preliminary document that eventually becomes the final commercial invoice used when goods are cleared through customs. A proforma helps a buyer plan, arrange financing, or open a letter of credit, but the commercial invoice is the document customs actually use to assess duties. Sources verified 2026-08-13 by the JupiterInvoice team.

Need one to send? Use the free proforma invoice template: a worked example with the right "not a tax invoice" wording, which you can download or send as a live document.

Common questions about Proforma invoice

Is a proforma invoice the same as a quote?
Close, but not identical. A quote is a price offer in any format the seller chooses. A proforma is specifically a quote presented as an invoice, with the line items, totals, and seller details a real invoice would carry, so the buyer's AP or procurement team can process it through the same workflow they use for real invoices.
Can a customer pay a proforma invoice?
Yes, and many do, especially for deposits. The catch is on the seller's side: once payment is received, the seller has to issue a corresponding real invoice (with a proper sequential number) so the transaction is recorded for VAT or sales tax. The proforma itself is not a tax document.
Does a proforma count for VAT or GST?
No. A proforma is not a tax invoice, so it does not get reported in your VAT or GST returns and the buyer cannot use it to reclaim input tax. Issue a real invoice when the goods or services are delivered or when payment is received, and that is the document that goes into your tax records.

Last updated August 23, 2026

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