Proforma Invoice: 11 Details a Good Export Quote Needs

A proforma invoice is a preliminary bill of sale that a seller sends before goods ship or work starts, showing exactly what the buyer will pay if they go ahead. It looks like an invoice and uses the same layout, but it does not bill a completed supply, and in most tax systems it is not a tax document. Exporters rely on it heavily, and domestic businesses use it to collect a deposit before committing time or stock.

Updated September 2026. General information, not tax or legal advice. Rules vary by country.

What a proforma invoice is, and what it is not

The US International Trade Administration describes the document as a quotation laid out in invoice form. That framing is the most useful way to think about it: the content is a firm offer on price and terms, and the format is chosen so that banks, customs brokers and the buyer’s own finance team can read it quickly.

• It is a detailed statement of what will be supplied, at what price, on which delivery and payment terms, and for how long the offer stands.
• It is not a request for payment for something already delivered, and it should not be entered in the sales ledger as income.
• It is not normally a VAT or GST invoice, so the buyer cannot use it to support a tax reclaim.

Whether it binds either party depends on the contract law where you trade and on the wording you use. The ITA guidance adds a practical rule worth following everywhere: once a buyer has it, do not change the terms without their agreement.

Why buyers ask for one

According to the ITA, overseas buyers commonly need the document to apply for an import licence, to arrange a pre-shipment inspection, to open a letter of credit or arrange a transfer of foreign currency, and to prepare the import itself. Domestic uses are simpler: a customer’s purchasing department may need a priced document before it can raise a purchase order, or a seller may want payment in advance before ordering materials.

The 11 details a proforma invoice for export should include

The ITA lists the following elements. Missing any of them tends to cause delays at the bank or at the border rather than an outright rejection, which is why they are easy to overlook.

1. Seller name and address. Use the legal entity that will issue the final invoice.
2. Buyer name and address, matching the importer of record where possible.
3. Buyer reference, such as their enquiry or request number.
4. Items quoted, described precisely enough to classify for customs.
5. Unit price and extended total for each line.
6. Weights and dimensions, which freight forwarders need to price shipping.
7. Discounts, shown as separate lines so the net price is clear.
8. Terms of sale, stated as an Incoterm with the named delivery point.
9. Payment terms, including any deposit and when the balance is due.
10. Estimated shipping date.
11. Validity date, after which the prices no longer apply.

Head the document clearly with the word proforma and give it its own reference series, separate from real invoices. Our guide to building an invoice number sequence explains why mixing the two series causes problems later.

How tax authorities treat a proforma invoice

United Kingdom

HMRC’s VAT Trader Records Manual says a pro-forma invoice is not normally an accounting document, should be clearly described as such, and should preferably carry the words “This is not a VAT invoice”. The same page says that once payment is made and the supply goes ahead, a proper VAT invoice should be issued. VAT Notice 700 sets the general limit for issuing a VAT invoice at 30 days from the tax point.

European Union

The EU VAT Directive (2006/112/EC) sets the contents of an invoice and generally requires one for a payment on account received from a business customer before the supply is made. A deposit collected against a proforma therefore usually needs its own invoice, whatever the proforma itself says. Two mandates add a format requirement for the invoice that follows. In Belgium, VAT-registered businesses have had to exchange structured e-invoices with each other since 1 January 2026, using Peppol BIS Billing 3.0. In Germany, businesses have had to be able to receive e-invoices since 1 January 2025, companies with turnover above 800,000 euros must issue them from 1 January 2027, and the rule extends to all businesses from 1 January 2028. A PDF proforma does not replace any of that.

United States

There is no federal VAT, so the tax question rarely arises. Customs is different: US Customs regulations at 19 CFR 141.85 prescribe the form a pro forma invoice must take when an importer does not have the seller’s commercial invoice at entry.

Worked example

The figures below are invented to show the layout. A furniture workshop in Portugal quotes a retailer in Canada for 40 oak chairs.

• 40 chairs at 120 euros each: 4,800 euros.
• Trade discount of 5 percent: minus 240 euros, giving 4,560 euros.
• Terms of sale: FCA Porto. Estimated shipping date: six weeks from deposit.
• Payment: 30 percent deposit of 1,368 euros on acceptance, balance of 3,192 euros before dispatch.
• Valid for 30 days from issue.

When the deposit arrives, the workshop issues an invoice for 1,368 euros, and a final invoice for the balance before shipping. The proforma stays on file as the agreed offer, but it never enters the books as a sale.

Proforma, quote and commercial invoice

A quote and a proforma can carry identical prices. The difference is the level of detail and the audience: a quote persuades a customer, while the proforma is built for banks, inspectors and import officials. If you only need to price a job for a local client, our quote generator is the lighter option, and our explainer on quote vs estimate covers which wording commits you to a price. When the sale completes, the commercial invoice takes over, which you can produce with the invoice generator.

Common mistakes

• Recording it as revenue. Nothing has been sold yet.
• Leaving out the validity date, so an old price can be accepted months later.
• Quoting no Incoterm, which leaves freight and insurance costs open to argument.
• Changing figures after the buyer has used it for a licence or letter of credit, which can make those documents inconsistent.
• Skipping the real invoice after payment arrives.

Common questions

Is a proforma invoice a legal invoice? Not usually. In the UK, HMRC does not treat it as a VAT invoice, and in the EU a separate invoice is needed once payment or supply happens. It records an offer rather than a completed sale.

Can I pay against a proforma invoice? Yes, paying in advance against one is common. The seller should then issue a proper invoice for the amount received, because the proforma cannot support a tax reclaim.

What is the difference between a proforma invoice and a quote? Both state a price. A proforma adds the detail banks and customs need, such as weights, Incoterms, shipping date and validity, and is laid out like an invoice.

How long is a proforma invoice valid? As long as the validity date printed on it. The ITA lists that date as a standard element, so set one every time.

Do I need to number a proforma invoice? A reference number helps the buyer and bank, but keep it in a separate series from real invoices so your invoice sequence stays unbroken.

Sources and further reading

Where the figures and rules above come from, so you can check them:

• What a pro forma invoice should contain for export: US International Trade Administration
• Pro-forma invoices and VAT: HMRC VAT Trader Records Manual, VATREC9010
• VAT invoices, numbering and the 30 day issuing limit: HMRC VAT Notice 700
• EU invoicing rules, Articles 219 to 240: Council Directive 2006/112/EC (EUR-Lex)
• Belgium B2B e-invoicing from 1 January 2026: European Commission
• Germany B2B e-invoicing phase-in: European Commission
• Prescribed form of a pro forma invoice for US imports: 19 CFR 141.85 (Cornell LII)

Photo credits: MAERSK HANOI Container Ship (Port Koper SIKOP, 2023) by Petar Milošević, CC BY-SA 4.0, via Wikimedia Commons. Office Work by Châu Thông Phan, CC0, via Stocksnap.