What is a proforma invoice?
When to use a proforma invoice, how it differs from a VAT invoice, and why it can't be used to reclaim VAT.
Last updated 14/06/2026
A proforma invoice is a “here’s what it will cost” document you send before a sale is finalised. It looks like an invoice but isn’t a demand for payment in the accounting sense.
When to use one
- Confirming the price and terms with a new customer before you start
- Requesting an upfront or deposit payment before delivery
- Providing paperwork for shipping or customs on exports
- Any time the buyer needs the figures in writing before committing
How it differs from a VAT invoice
A proforma is not a VAT invoice:
- The customer can’t use it to reclaim VAT — only a proper VAT invoice supports that.
- You shouldn’t record it in your sales/VAT accounts as an invoice.
- It’s good practice to clearly mark the document “Proforma” so it isn’t mistaken for the real thing.
Once the sale goes ahead, issue a proper invoice (a full VAT invoice if you’re registered) — see what a VAT invoice must include.
Proforma vs quote
A quote focuses on winning the work (a price offer). A proforma usually comes a step later — confirming the agreed figures and payment details just before the supply or payment. In practice many small businesses use a quote, then a proper invoice, and only reach for a proforma when a customer specifically needs to pay in advance.
Making one
The invoice generator produces a clean document you can send as a proforma — add a note such as “Proforma — not a VAT invoice” so its status is unmistakable, then issue the proper invoice once the sale completes.
Frequently asked questions
Is a proforma invoice a real invoice?
No. A proforma is a preliminary document sent before the sale is final. It isn't a VAT invoice and shouldn't be entered in your accounts as one or used by the customer to reclaim VAT.
When should I send a proforma invoice?
Typically to confirm price and terms before payment or delivery — for new customers, for upfront/deposit payments, or for export paperwork. Once the supply happens, issue a proper invoice.
Does a proforma create a VAT tax point?
Generally no — issuing a proforma doesn't create a VAT tax point on its own. Receiving payment can, though, so issue a proper VAT invoice when payment is made.
Ready to create your invoice?
Open the free generator →General information, not tax advice. Always check current HMRC guidance or consult an accountant.