A proforma invoice is a preliminary bill of sale sent to a buyer before goods or services are delivered. It outlines the items, quantities, prices, and estimated total so the client knows exactly what to expect — but it is not a demand for payment and cannot be used for tax purposes.
A proforma invoice is typically used to:
Once the order is confirmed and the goods or services are delivered, the seller replaces the proforma with a standard tax invoice. The two documents look similar, but only the final tax invoice records GST collected and supports input tax credit claims. Always clearly label proforma invoices "PROFORMA" or "Not a Tax Invoice" to avoid confusion. InvoiceSonic lets you create both proforma and tax invoices from one workflow.
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