What Is Proforma Invoice?

A proforma invoice is a draft invoice sent before a sale is finalised. It shows the buyer exactly what to expect — items, quantities, prices, and total — but it isn't a legal demand for payment and can't be used to claim GST credits.

Common reasons to issue a proforma invoice:

  • Provide a formal price quote that the client can approve
  • Support customs clearance and shipping for international orders
  • Request an upfront deposit on a custom or large order
  • Give the client documentation to secure financing or internal approval

The buyer reviews the proforma, confirms the order, pays a deposit if required, and the seller then delivers the goods or services and issues a final tax invoice. Always label the document "Proforma" clearly so it isn't mistaken for the real tax invoice. The tax invoice — not the proforma — is the document used for accounting and GST input credit claims. InvoiceSonic lets you convert a proforma into a tax invoice with one click once the work is delivered.

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