Key takeaways
- Issued before supply; not recorded as a sale.
- Commonly used for advance payment, customs and bank finance.
- Should be clearly titled "Proforma Invoice".
- Once goods ship, issue a final invoice referencing the proforma.
What to include
- Title "Proforma Invoice", reference number and date.
- Seller and buyer details.
- Goods description, HS codes for international shipments, quantities and prices.
- Incoterms, shipping method, estimated weight and country of origin where relevant.
- Validity period and payment terms.
Proforma vs invoice
| Proforma invoice | Invoice | |
|---|---|---|
| Timing | Before supply | After or at supply |
| Accounting | Not a sale | Records the sale |
| Tax recovery | Usually not valid | Valid if it meets local rules |
Tax and invoicing rules differ by country and change over time. Confirm current requirements with your accountant or the tax authority where you are registered.
Frequently asked questions
Can a buyer pay against a proforma invoice?
Yes, buyers often pay an advance against a proforma. The seller then issues a final invoice.
Is a proforma invoice accepted by customs?
Many customs authorities accept a proforma for pre-clearance or samples, but a commercial invoice is usually required for final clearance.