Proforma invoice vs invoice
| Proforma invoice | Invoice | |
|---|---|---|
| When | Before the supply, to invite payment or confirm terms | When or after the goods or services are supplied |
| Purpose | An offer and a request for payment | Formal confirmation of the supply and the amount due |
| Tax records | Usually kept out of the accounts [1] | Recorded in the accounts of seller and buyer |
| Reclaiming VAT | Not accepted as evidence in the UK [2] | Needed to reclaim VAT or GST where you are registered |
HMRC describes a pro-forma invoice as a commercial document that sets out what will be supplied if payment is made, and says it should be clearly described as such, preferably endorsed "This is not a VAT invoice". Once payment is received or the supply is made, a full VAT invoice must be issued within 30 days. [1] [2]
What to put on a proforma invoice
- The words "Proforma invoice" and, where relevant, "This is not a VAT invoice".
- Your details and your customer's details.
- A description, quantity and price for each item.
- Estimated tax, shipping and the total.
- Payment terms and payment details.
- For goods being shipped abroad, the details your customer or carrier asks for, such as item codes and country of origin.
Frequently asked questions
Can my customer reclaim VAT with a proforma invoice?
Not in the UK: HMRC does not accept pro-forma invoices as evidence for reclaiming input tax. Other countries have their own rules, so check with your tax authority. [2]
Should the proforma and final invoice share a number?
Keep a separate series for proforma invoices, so your sequential invoice numbers are used only for real invoices.
Sources
- [1] HM Revenue & Customs: VATREC9010 – Pro-forma invoices: Introduction (accessed 2026-09-29)
- [2] HM Revenue & Customs: VATREC9020 – Can a pro-forma invoice be used to account for VAT? (accessed 2026-09-29)