"Proforma invoice" means a preliminary invoice sent to a buyer before goods or services are delivered. The Latin "pro forma" literally means "for the sake of form" — the document looks like a real invoice but is not a demand for payment and cannot be used for GST credits.
A proforma invoice is used to:
Once the buyer confirms the order and the goods or services are delivered, the seller replaces the proforma with a final tax invoice. The tax invoice — not the proforma — records the actual sale, the GST collected, and is what the buyer uses to claim a GST input tax credit. Always label the document "Proforma" or "Not a Tax Invoice" so it isn't mistaken for the final bill. InvoiceSonic supports proforma invoices and converts them to tax invoices with one click.
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