Proforma invoice - what it is and when to use it

A proforma invoice is a commercial document, not an accounting one: it informs the client about the amount due before the final invoice is issued.

What is a proforma invoice?

It is an informational document sent to the client before the sale or payment. It is not an accounting document: it is not recorded, creates no tax obligations and does not replace an invoice. It confirms terms, prices and order details.

Proforma vs invoice: the differences

• a proforma is not a tax document - an invoice is
• a proforma is not recorded in accounting
• a proforma can be freely edited before the sale
• after the proforma is paid, the final invoice is issued

When to issue a proforma?

• to request an advance payment or deposit
• to present an offer with complete billing details
• in international shipments - for customs