What is a proforma invoice?

A proforma invoice is a preliminary bill of sale sent before goods are delivered or work begins. It tells the buyer exactly what they will be charged so they can arrange advance payment, secure financing, or clear customs. It is a commitment to price, not a demand for tax-deductible payment.

Is a proforma invoice a legal tax document?

No. A proforma invoice is not a VAT invoice and cannot be used to reclaim VAT or post the sale to your accounts as revenue. That is why this builder stamps it 'PROFORMA — NOT A TAX DOCUMENT'. Once payment is made and goods ship, you issue a real tax invoice.

When should I use a proforma instead of a normal invoice?

Use a proforma when you need payment before delivery, when a customer needs the figures to get internal approval or financing, or when goods cross a border and customs needs a declared value. New customers paying upfront are the most common case.

Does a proforma invoice show VAT?

It can show the VAT that will apply so the buyer knows the full amount to pay, but the VAT only becomes reclaimable once the actual tax invoice is issued. This tool calculates net, VAT, and gross so the proforma reflects the true final price.

What does the validity date mean?

Prices on a proforma are only guaranteed for a stated period because costs and exchange rates move. The validity date tells the buyer how long they have to accept and pay at the quoted figures before you may re-quote.

Proforma Invoice Builder

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A clear price commitment — before you invoice for real

A proforma invoice is the document you send when a customer needs to know exactly what they will pay before anything ships. It looks like an invoice and carries the same line items and totals, but it is explicitly not a tax document — it cannot be used to reclaim VAT or booked as revenue. It exists to support advance payment, internal approval, financing, and customs clearance. This builder produces a correctly labelled, fully totalled proforma in one pass.

How it works

Each line carries a quantity, a unit price, and a VAT rate, and the totals work exactly like a real invoice:

Line net    = quantity × unit price
Line VAT    = line net × (vat rate ÷ 100)
Subtotal    = Σ line net
VAT total   = Σ line VAT
Grand total = Subtotal + VAT total

The output is stamped PROFORMA — NOT A TAX DOCUMENT at the top so it can never be mistaken for a VAT invoice. It carries the parties, a reference number, an issue date, delivery terms, and a validity date that tells the buyer how long the quoted prices hold. When the buyer pays and goods ship, you then issue a real tax invoice for the same figures.

Tips and notes

Always keep the “not a tax document” stamp — it is what legally distinguishes a proforma from a VAT invoice and protects both sides at audit. Set a realistic validity date; quoting a fixed price with no expiry leaves you exposed when costs move. For cross-border shipments, declare the goods value clearly because customs uses the proforma to assess duty. Once the customer pays, raise a sequentially numbered tax invoice for the same amount so your accounts and VAT records reflect the actual sale rather than the preliminary quote.