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A proforma invoice is a preliminary invoice that is sent to a buyer before a sale is confirmed. This invoice highlights the deliverables from the seller's end such as the goods or services to be delivered, their prices, shipping information, and delivery date.

A proforma invoice is an estimate of the cost of the goods or services for the buyer. It is only meant for buyers to understand how much something will cost them. A tax invoice, on the other hand, is an official document that includes the final price and tax details.

A purchase order is considered a commercial document, meaning an official confirmation of a sale, while a proforma invoice is a quote from a sale, not a confirmation. That's why the terms in a proforma invoice are still subject to change, while a purchase order is a legally binding agreement.

A quote isn't a done deal and there is no expectation of payment. A proforma invoice is sent after the prices have been agreed upon. Even though a proforma invoice is sent when payment is expected, payments can't be made on it and it needs to be converted into a finalised invoice.

A price quote is given before any work is started. It details how much a project or job will cost. An invoice is provided after the work is complete. It lists the final costs and when payment is due.

A pro forma invoice is a document that provides information regarding the particulars of the goods or services yet to be delivered to the buyer/customer. A formal estimate shows the goods or services needed and the total amount owed to the products or services.

A final sales invoice (also called a commercial invoice, final invoice, or official invoice) is a business instrument that states the total amount due and requests payment. A proforma invoice is a declaration by the seller to provide products or services in the future and isn't a legally binding agreement.

Like a regular invoice, proforma invoices should include contact details, a date of issue, a description of the goods or services provided, the total amount due, and any VAT. They might also include payment terms such as which methods of payment you accept and when payment is expected.

A proforma invoice is a preliminary bill or estimated invoice which is used to request payment from the committed buyer for goods or services before they are supplied. A proforma invoice includes a description of the goods, the total payable amount and other details about the transaction.

Can a proforma invoice be used for tax purposes? According to HMRC, proforma invoices aren't considered to be commercial invoices or VAT invoices.