Free Proforma Invoice Template
A proforma invoice is a preliminary bill: it tells the buyer exactly what they will be charged before the goods are shipped or the work is done. It looks like an invoice, but it is not a demand for payment in the accounting or tax sense.
When to use a proforma invoice
- To request an advance payment or deposit before you start
- When a client needs a document for internal approval or a purchase order
- For international shipments, when customs or an import licence needs the value of the goods in advance
- To confirm price, quantities and terms before a large order
Proforma invoice vs. invoice
| Proforma invoice | Invoice | |
|---|---|---|
| Purpose | Estimate or advance request | Request for payment for a supply |
| Recorded in your books | No | Yes |
| Customer can reclaim VAT with it | No | Yes (if it is a valid VAT invoice) |
| Numbering | Separate series, e.g. PF-2026-004 | Your main sequential series |
What to include
- The title "Proforma invoice" and, if you are VAT registered, the words "This is not a VAT invoice"
- Your details and the buyer's details
- A description, quantities and prices, and the expected VAT
- Validity date, payment terms and delivery terms
- For shipments: country of origin, HS codes, weight and Incoterms
Once the buyer pays or you deliver, issue a normal invoice with its own number from your main sequence and refer to the proforma.
Create one with Billowly
Choose Proforma invoice as the document type: the PDF is titled "Proforma invoice" and numbered as a proforma. Add "This is not a VAT invoice" and the validity date in the notes.
Official sources
Checked against these sources in October 2026. Rules and rates change, so confirm with the tax authority or an adviser before relying on them. General information, not legal or tax advice.
FAQ
Is a proforma invoice legally binding?
Not as an invoice. It is a quote or offer in invoice form. Once accepted it can be part of the agreement, but tax-wise only the final invoice counts.
Can a customer reclaim VAT on a proforma invoice?
No. VAT can only be reclaimed with a valid VAT invoice. That is why VAT-registered businesses mark proformas 'This is not a VAT invoice'.
Should a proforma use my normal invoice number?
No. Use a separate series (such as PF-2026-001) so your main invoice sequence has no gaps.
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