---
title: 'Proforma invoice: meaning, example and how it works'
url: 'https://bizzey.com/en/blog/proforma-invoice'
markdown: 'https://bizzey.com/en/blog/proforma-invoice.md'
lang: en
date: '2023-09-18'
description: 'What is a proforma invoice? A proforma invoice (also written pro forma invoice) is a document that looks like an invoice but does not create a legal obligation to pay. The term "pro forma" comes from Latin and means "as a matter of form." A proforma invoice is essentially a preliminary invoice or a…'
taxonomy:
  tag:
    - Invoicing
    - Tips
---

# Proforma invoice: meaning, example and how it works

A proforma invoice looks like a real invoice but is not one. Learn what a proforma invoice means, when to use one, how it differs from a standard invoice, and how to create one in minutes with Bizzey.

## What is a proforma invoice?

A **proforma invoice** (also written *pro forma invoice*) is a document that looks like an invoice but does not create a legal obligation to pay. The term "pro forma" comes from Latin and means "as a matter of form."

A proforma invoice is essentially a **preliminary invoice or a confirmed quote in invoice format**. It contains all the information you would expect on a standard invoice — item descriptions, quantities, prices and VAT — but is clearly marked "PROFORMA" or "PRO FORMA" and does **not carry an official invoice number**.

Proforma invoices are commonly used for:

- International shipments (for customs and import documentation)
- Projects where the client needs a preliminary cost estimate
- Situations where a client must obtain internal budget approval before committing

Create quotes, invoices and proforma documents in Bizzey.

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 [Try for free →](https://app.bizzey.com/sign_up)

## Is a proforma invoice legally binding?

No — a proforma invoice is **not legally binding**. It creates no payment obligation and cannot be used for VAT reporting or accounting purposes.

Specifically:

- The client is **not legally required to pay** based on a proforma invoice
- You **cannot record** a proforma invoice as revenue in your accounts
- **VAT cannot be reported** on a proforma invoice

A legal obligation only arises when a formal invoice is issued. The proforma invoice serves purely as an informational document.

**Exception**: In some countries, particularly for import and export, the proforma invoice has an official function in customs procedures — but solely to declare the value of goods, not as proof of a taxable transaction.

Create quotes, invoices and proforma documents in Bizzey.

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## Proforma invoice vs. invoice vs. quote

Many business owners are unclear on the differences between a quote, a proforma invoice and a standard invoice. Here is a clear comparison:

 | Document | Legal value | Payment obligation | VAT reporting |
|---|---|---|---|
| **Quote** | Non-binding proposal | No | No |
| **Proforma invoice** | None | No | No |
| **Standard invoice** | Yes — legal document | Yes | Yes |

**Quote vs. proforma invoice**: A quote is a formal price proposal to a potential client. A proforma invoice is used *after* the client has agreed — as confirmation of what will be charged, often for internal approval or customs documentation.

**Proforma invoice vs. standard invoice**: The only visible difference is the "PROFORMA" label and the absence of a final invoice number. Once goods or services are delivered, you replace the proforma with an official invoice.

Create quotes, invoices and proforma documents in Bizzey.

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## When do you use a proforma invoice?

Use a proforma invoice in the following situations:

**1. Import and export**When shipping internationally, customs authorities require a proforma invoice to determine the value of goods for import duties and tariffs. It is used for customs declarations but is not an official commercial document.

**2. Budget approval**Many companies request a proforma invoice so their procurement team or finance department can approve a purchase internally before placing a final order.

**3. Advance payments and deposits**If you request a deposit from a client, you may first issue a proforma invoice. The client pays based on this document and a final invoice follows upon delivery.

**4. Free samples and zero-value shipments**When sending free product samples abroad, a proforma invoice showing a value of "€0" is typically required for customs.

**5. Pre-approval before final invoicing**Some service providers send a proforma invoice to the client for sign-off before issuing the final invoice — preventing disputes after the fact.

Create quotes, invoices and proforma documents in Bizzey.

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 [Try for free →](https://app.bizzey.com/sign_up)

## Proforma invoice example

A proforma invoice looks identical to a standard invoice but includes the label **"PROFORMA INVOICE"** or **"PRO FORMA INVOICE"** prominently at the top of the document.

**Required elements on a proforma invoice:**

- Seller name, address and VAT number
- Buyer name and address
- Document date
- Description of goods or services
- Quantities and unit prices
- Subtotal, VAT amount and total
- Currency and payment terms
- Validity period of the document
- Clear label: **"PROFORMA"**

**What it does NOT include:**

- An official invoice number (use a prefix like "PRO-" or "PF-" instead if needed)
- The label "INVOICE" without "PROFORMA"

With Bizzey, you create a proforma invoice by drafting a quote or invoice and marking it as proforma. The system automatically applies the correct label and formatting.

Create quotes, invoices and proforma documents in Bizzey.

14-day free trial · No credit card required

 [Try for free →](https://app.bizzey.com/sign_up)

## How to create a proforma invoice in Bizzey

Creating a proforma invoice in Bizzey takes just a few clicks:

1. **Create a new quote or invoice** in Bizzey
2. **Add your client** — company details are auto-filled from VAT number lookup
3. **Add your line items** with quantities and unit prices
4. **Mark the document as proforma** — Bizzey adjusts the formatting automatically
5. **Send it by email** directly from Bizzey to your client

When the client approves or the goods are delivered, convert the proforma invoice to an official invoice in one click — with an automatically assigned invoice number, ready for your VAT return.

Create quotes, invoices and proforma documents in Bizzey.

14-day free trial · No credit card required

 [Try for free →](https://app.bizzey.com/sign_up)

## Frequently asked questions about proforma invoices

**Should VAT be shown on a proforma invoice?**You can show VAT as an indication for the client, but you cannot report it in your VAT return. VAT on a proforma invoice is informational only.

**Does a proforma invoice need an invoice number?**No — or you can use a separate numbering series with a prefix like "PRO-" or "PF-". A proforma invoice does not receive a final invoice number.

**Can a client pay based on a proforma invoice?**Technically yes, but there is no legal obligation to do so. In practice, clients sometimes pay a deposit against a proforma invoice, with a final invoice to follow upon delivery.

**How long is a proforma invoice valid?**You decide. Common validity periods are 30 to 90 days. Always state the validity date clearly on the document.

**Proforma invoice or quote: which one should I send?**Send a quote when proposing a price to a potential client. Send a proforma invoice when the client has already agreed and needs a formal document for internal approval, budget sign-off or customs.

**Is it "proforma invoice" or "pro forma invoice"?**Both are correct. "Pro forma" is the original two-word Latin form; "proforma" is the commonly used single-word version in business contexts. Either is acceptable on your documents.

---

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