Proforma invoice generator
A priced preview of a sale, sent before the goods ship or the work starts, so the buyer can pay in advance, arrange finance or clear customs.
What a pro forma invoice is (and is not)
A pro forma invoice looks like an invoice but is a commitment to sell at a price, not a demand for payment of a completed supply. HMRC’s VAT manual (VATREC9020) is explicit: a pro-forma is not a valid VAT invoice, so the buyer cannot reclaim input tax on it, and once the seller is paid or makes the supply, a full VAT invoice must be issued within 30 days. That is why UK businesses print “This is not a VAT invoice” on it; the checkbox adds that line.
Pro forma for exports
Importers and banks often ask for a pro forma before a shipment to arrange an import licence, a letter of credit or a customs value estimate. Add the Incoterm (the ICC’s standard delivery terms such as FOB or DAP), the HS tariff code and the country of origin in the Document section.
When the goods ship, press Turn into: Invoice to create the final commercial invoice with the same lines.
Questions
Is a proforma invoice legally binding?
It is usually treated as an offer or a good-faith estimate of the final invoice. It becomes binding once the buyer accepts it and both sides act on it, depending on local contract law.
Can I reclaim VAT on a pro forma invoice?
Not in the UK. HMRC says pro-forma invoices are not acceptable evidence for input tax; you need the full VAT invoice that follows.
What is the difference between a proforma and a quote?
Both come before the sale. A quote proposes a price for the client to accept; a pro forma is issued once terms are agreed, usually to collect prepayment or for customs.
Sources
- HMRC VAT Trader Records manual VATREC9020: Pro-forma invoices
- International Chamber of Commerce: Incoterms® rules
Invoice Studio makes documents; it does not give legal or tax advice.