Free Proforma Invoice Generator

No. A proforma invoice is not a legally binding demand for payment. It is a preliminary document that outlines expected costs and terms. It serves as a commitment to supply goods or services at the stated price, but the buyer is not legally obligated to pay until a formal invoice is issued after delivery.

Generally, no. HMRC does not consider a proforma invoice to be a VAT invoice, so you should not charge or reclaim VAT based on a proforma. You may include estimated VAT for informational purposes, but the official VAT invoice must be issued separately once the transaction is complete.

Yes. Proforma invoices are widely used in international trade for customs declarations. They help customs authorities assess duties and tariffs on goods being shipped. Many countries require a pro forma invoice to accompany shipments before a commercial invoice is available.

The term 'pro forma' comes from Latin and translates to 'for the sake of form' or 'as a matter of form.' In business, it refers to a document provided as a courtesy or formality — outlining expected details of a transaction before it is finalised.

There is no universal validity period for a proforma invoice — it depends on what the seller specifies. Most businesses set a validity of 30 days, though it can range from 7 to 90 days. Always include an expiry date on your proforma so the buyer knows how long the quoted price stands.

While both outline expected costs before a transaction, a proforma invoice is more formal and typically used once terms are nearly agreed. It often includes shipping details, delivery terms, and payment conditions. A quotation is usually the first step — a price estimate that may still be negotiated.