Proforma invoice
Send the draft before the final invoice.
Use a proforma invoice for approvals, customs, and prepayment requests before you issue the final bill.
Draft a proforma invoice for customs, client approvals, or prepayment workflows before the final invoice is issued.
Document parties
Document details
Line items
A proforma invoice is a draft invoice sent before the real one. It looks like an invoice and shows the expected charges, but it is not a demand for payment and does not go in your sales ledger. Buyers use it to get internal approval, arrange payment, or clear customs; sellers use it to confirm the deal before issuing the binding invoice. This generator builds a proforma invoice PDF for exactly those workflows.
What a proforma invoice is for
A proforma bridges the gap between a quote and a final invoice. A buyer often needs a document that looks like an invoice to release a purchase order, set up a supplier, or get funds approved — but you do not yet want to book the sale. The proforma fills that gap without creating a tax liability.
In international trade, customs authorities frequently accept a proforma to estimate duties and taxes before the goods ship, with the commercial invoice following once the sale is final.
Proforma vs. quote vs. invoice
A quote proposes a price. A proforma presents that price in invoice form for approval or prepayment. The final invoice records the actual sale and is what you enter in your books and report for tax. Using the right document at each stage keeps your accounting clean.
Mark the document clearly as 'Proforma invoice' so nobody mistakes it for the real invoice and pays or records it twice.
How to use it
- 1Add your details and the buyer's details.
- 2List the expected items, quantities, and prices.
- 3Show estimated tax and shipping if relevant.
- 4Label it clearly as a proforma invoice.
- 5Download the PDF for approval, prepayment, or customs.
- 6Issue the final invoice once the sale is confirmed.
What to include for the US, Canada, the UK, and Australia
- A proforma is not a tax invoice; it does not create a tax point or belong in your sales records.
- In the UK, do not reclaim or account for VAT on a proforma — wait for the actual VAT invoice.
- In Canada and Australia, GST/HST or GST is reported from the final tax invoice, not the proforma.
- For exports, customs may accept a proforma to estimate duties, but a commercial invoice is required for the actual clearance.
This is general information, not legal or tax advice. Tax registration numbers, mandatory wording, and retention periods differ by country and by state or province — confirm the rules that apply to you before sending a document to a client.
Worked example
An exporter sends a buyer a proforma invoice for '100 units at $12', showing $1,200 plus estimated shipping, clearly marked 'Proforma'. The buyer uses it to arrange a bank transfer and to pre-clear customs.
Once payment is confirmed and the goods ship, the exporter issues the final commercial invoice with the same figures. Only the final invoice is entered in the books and reported for tax.
FAQ
Is a proforma invoice a real invoice?
No. It is a draft that looks like an invoice but is not a demand for payment and is not recorded as a sale. The final invoice does that job.
When would I send a proforma?
When a buyer needs an invoice-shaped document to approve a purchase, arrange prepayment, or estimate customs duties before the sale is finalised.
Do I report tax on a proforma?
No. A proforma does not create a tax point. Report tax from the final invoice only.
How is it different from a quote?
A quote proposes a price in a simple format; a proforma presents that price formatted as an invoice for approval or prepayment.
Can a buyer pay from a proforma?
They can arrange payment from it, which is common in prepayment workflows, but you still issue a final invoice to record the completed sale.
Should I number a proforma?
Give it a reference so it can be tracked, but keep it separate from your binding invoice number sequence.
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