Skip to content
InvoicesKitPro

Proforma Invoice vs Tax Invoice

By InvoicesKitPro · · 4 min read

A proforma invoice is an advance offer; a tax invoice records an actual sale. Here is when each is used and what they must say.

What a proforma is for

A proforma invoice is sent before the sale is final. It tells the buyer exactly what they will pay so they can arrange payment, approvals or import paperwork. It is common in exports, where banks and customs ask for one before goods leave.

Why it is not a tax invoice

Because no sale has happened yet, a proforma does not create a tax liability and the buyer cannot claim input tax on it. It should be clearly titled "Proforma Invoice" and ideally say that it is not a tax invoice.

From proforma to final invoice

A tidy process looks like this:

  • Send the proforma with a validity date and payment details
  • Receive the advance or order confirmation
  • Duplicate it and change the document type to Invoice
  • Record any advance as "amount already paid" so the balance is right

Ready to try it?

Create a proforma invoice

This guide is general information, not tax or legal advice. Rules change; check with your tax authority or accountant.

More guides