Proforma Invoice Hide Signature For Free

Basically, the main distinction is that one is used as an estimate, and the other as a request for final payment. A pro forma is used before goods are shipped and no payment is required. A commercial invoice is sent after the goods have been delivered and now, it is time to pay.

Pro forma invoice is not an actual invoice and therefore is not a legal document. GST act does not contain any term such as pro forma invoice. It is not required to be reported under any GST returns, either by buyer or seller. And seller is not required to pay GST on pro forma invoices issued.

Because proforma invoices are not official invoices (they should always be marked as 'Proforma' and do not have an invoice number), it is not necessary to create a credit note to cancel or change a proforma invoice.

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 details or terms and conditions such as which methods of payment you accept and when payment is expected.

A pro forma invoice is a quotation bill. It generally marks the details of the transaction, including the price, quality and quantity of the product, payment, delivery terms, etc.On the other hand, a commercial invoice is a legally binding bill and is even used by customs to clear the shipment.

On the other hand, a commercial invoice is a legally binding bill and is even used by customs to clear the shipment.Simply put, a pro forma invoice is a quotation which is issued before the buyer places an order with the seller and hence, it is not an actual invoice but a document to record the terms of the sale.

The simple answer is no, a payment cannot be made on a proforma invoice.