Proforma Invoice Template
What It Is, When to Use It & Free Download
A proforma invoice is a preliminary document sent to a buyer beforea sale is confirmed. It looks like a real invoice but isn't a legal demand for payment — it's more like a detailed quote or a "here's what the invoice will look like" document. Knowing when to use one can save you from accounting confusion and customs delays.
📥 Free Proforma Invoice Template
Download a professional proforma invoice template with all required fields. Word / PDF format.
What is a proforma invoice?
The word "proforma" comes from Latin and means "as a matter of form" — it's a formality, a template, a prediction of what the real invoice will say.
When should you use a proforma invoice?
Customs authorities often require a proforma invoice to assess duties before the final shipment. It shows the declared value and description of goods.
Some corporate clients need to get budget approval before you invoice. A proforma lets them raise a PO without you committing to a final invoice date.
International bank letters of credit often require a proforma invoice to initiate the bank payment process.
You can't issue a real invoice until goods are delivered. A proforma covers the period between order confirmation and shipment.
Similar to a quote but in invoice format. Shows client exactly what the invoice will look like when work is done.
Some goods require import licences in the Netherlands/EU. The proforma invoice is submitted with the licence application.
Proforma vs Quote vs Invoice vs Commercial Invoice
| Feature | Quote | Proforma | Invoice | Commercial Invoice |
|---|---|---|---|---|
| Legal demand for payment? | ❌ No | ❌ No | ✅ Yes | ✅ Yes |
| Recorded in accounts? | ❌ No | ❌ No | ✅ Yes | ✅ Yes |
| Used for customs? | ❌ No | ✅ Yes | ⚠️ Sometimes | ✅ Yes |
| Triggers VAT liability? | ❌ No | ❌ No | ✅ Yes | ✅ Yes |
| Can be revised? | ✅ Yes | ✅ Yes | ⚠️ Via credit note | ⚠️ Via credit note |
| Requires payment? | ❌ No | ❌ No | ✅ Yes | ✅ Yes |
What must a proforma invoice include?
A proforma invoice looks almost identical to a real invoice, except:
Clearly marked 'PROFORMA INVOICE' (not just 'Invoice')
Date of issue (not an accounting date)
Your own reference number (e.g. PRO-2026-001)
Name, address, VAT number, contact info
Company name, address, contact
Specific and detailed — customs will read this
Per line item
State clearly — important for cross-border
e.g. Net 30 — these are not binding yet
e.g. FOB, CIF, DDP
'This is not a VAT invoice. No payment is due at this time.'
Converting a proforma to a real invoice
Once the sale is confirmed (or goods delivered, or service completed), you issue the real invoice.
Check if the amounts changed from the proforma — if so, update them on the final invoice and note the change
Change the header from 'PROFORMA INVOICE' to 'INVOICE'
Assign a proper invoice number (sequential, from your invoicing system)
Use today's date as the invoice date (this is when VAT liability starts)
Remove the 'not a VAT invoice' declaration — it is now a VAT invoice
Send to the client and record in your accounting system
FAQ — proforma invoices
Is a proforma invoice legally binding?
No. A proforma invoice is not a legal demand for payment. It cannot be used as evidence of debt in court. It's a preview, not a contract.
Do I need a proforma invoice for UK exports after Brexit?
Yes, for goods. UK exporters to the EU typically need a proforma invoice (or full commercial invoice) for customs clearance, along with an export declaration on CHIEF/CDS.
Can I get paid on a proforma invoice?
Yes — some clients pay on proforma before you issue the final invoice (common for international transactions). When they pay, you then issue the real invoice (which replaces the proforma). This is called 'payment against proforma'.
Does a proforma invoice count as income for tax purposes?
No. A proforma invoice is not an accounting document. Revenue is only recognised (and VAT accounted for) when the real invoice is issued (or earlier if payment is received).
Proforma invoice vs invoice — which one do I send first?
Proforma first (before work starts / before shipment), then real invoice when the work is done / goods are shipped. Many freelancers skip the proforma and just use a quote or contract instead.
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