Invoicing Basics

What Is a Proforma Invoice? When and How to Use One

A proforma invoice looks like an invoice but isn't a demand for payment. Here's what it's for, how it differs from a real invoice and a quote, and when your business should send one.

S
Shahzaib Sheikh
Creator of Invoice Pro Lab
July 8, 2026·5 min read

The term "proforma invoice" confuses a lot of business owners because it sits somewhere between a quote and a real invoice. Understanding the difference matters — sending the wrong document can create accounting errors or delay a deal.

The Short Definition

A proforma invoice is a preliminary bill of sale sent to a buyer before the goods or services are delivered. It states what will be supplied and the expected cost, but it is not a demand for payment and does not count as a real invoice for accounting or tax purposes.

Proforma Invoice vs Quote

A quote is an offer, often informal and open to negotiation. A proforma invoice is more formal and detailed — it looks almost identical to a final invoice, including line items, taxes and totals, and is typically sent once the buyer has agreed to proceed but before delivery or final invoicing. Think of it as a "confirmed intention to sell" rather than an opening offer.

Proforma Invoice vs Commercial (Final) Invoice

The commercial invoice is the real thing: it records that a sale has happened, creates a legal obligation to pay, and is the document you keep for tax. A proforma invoice carries no such obligation — you cannot record it as revenue, and the buyer cannot use it to reclaim tax.

When to Use a Proforma Invoice

  • International shipping and customs: customs authorities often require a proforma invoice to estimate duties before goods arrive.
  • Requesting an advance payment: when a buyer needs a formal document to release a deposit or set up a supplier in their system.
  • Confirming details before final invoicing: to let the buyer check quantities, pricing and tax treatment before you issue the binding invoice.

What to Include

Label it clearly as "PROFORMA INVOICE," include your and the buyer's details, an itemised list of goods or services, unit prices, applicable taxes, the total, and a validity date. Crucially, use a separate numbering sequence from your real invoices so the two never get mixed up in your records.

How to Create One

You can produce a proforma invoice with any invoice tool — just change the document title to "Proforma Invoice" and omit a payment due date. In Invoice Pro Lab, build the document as normal, and use the notes field to mark it as proforma and state its validity period.

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