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Proforma Invoice Template
What It Is, When to Use It & Free Download

📅 May 2026·🕐 6 min read

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?

📖 Plain English definition:A proforma invoice is a "preview" of an invoice. It shows what you intend to charge before you actually invoice. It is not a request for payment and does notcreate a legal obligation to pay. It's used to agree on terms, help importers get import licenses, or give buyers time to arrange payment.

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?

🚢International trade / customs

Customs authorities often require a proforma invoice to assess duties before the final shipment. It shows the declared value and description of goods.

💳Client needs to arrange funding

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.

🏦Letters of credit

International bank letters of credit often require a proforma invoice to initiate the bank payment process.

🔄Goods not yet shipped

You can't issue a real invoice until goods are delivered. A proforma covers the period between order confirmation and shipment.

🤝Price agreement before work starts

Similar to a quote but in invoice format. Shows client exactly what the invoice will look like when work is done.

🇳🇱Import licences (Dutch/EU)

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

FeatureQuoteProformaInvoiceCommercial 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:

Header

Clearly marked 'PROFORMA INVOICE' (not just 'Invoice')

Date

Date of issue (not an accounting date)

Proforma number

Your own reference number (e.g. PRO-2026-001)

Your details

Name, address, VAT number, contact info

Client details

Company name, address, contact

Description of goods/services

Specific and detailed — customs will read this

Quantity, unit price, total

Per line item

Currency

State clearly — important for cross-border

Payment terms (preview)

e.g. Net 30 — these are not binding yet

Incoterms (if international)

e.g. FOB, CIF, DDP

Declaration

'This is not a VAT invoice. No payment is due at this time.'

💡 Key requirement: The proforma invoice must clearly state "This is not a VAT invoice"or similar wording. Without this, the recipient might try to claim VAT on it — which would cause accounting problems since you haven't actually accounted for the VAT yet.

Converting a proforma to a real invoice

Once the sale is confirmed (or goods delivered, or service completed), you issue the real invoice.

1

Check if the amounts changed from the proforma — if so, update them on the final invoice and note the change

2

Change the header from 'PROFORMA INVOICE' to 'INVOICE'

3

Assign a proper invoice number (sequential, from your invoicing system)

4

Use today's date as the invoice date (this is when VAT liability starts)

5

Remove the 'not a VAT invoice' declaration — it is now a VAT invoice

6

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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