What a proforma invoice is
A proforma invoice is a preview of the invoice you will issue once the sale goes ahead. It shows the buyer exactly what they'll receive, the quantities, the prices, any tax and shipping, and how to pay. "Pro forma" is Latin for "as a matter of form".
It is not a demand for payment in the accounting sense, and it doesn't go in your sales ledger. You don't record revenue from it, and your client can't use it to reclaim tax. When the goods ship or the service is delivered, you issue a real invoice.
When you need one
- Advance payment. The buyer's finance team needs a document before they release a prepayment or deposit.
- Import and export paperwork. Buyers often use a proforma to arrange an import license, apply for a letter of credit, or get a customs value estimate before shipping. Customs clearance itself normally needs the final commercial invoice.
- Internal approval. A purchase order at a larger company may need a priced document attached before it's signed.
- Agreeing on terms. Incoterms, delivery dates and packing can be checked on paper before anything is produced.
What to include
- The words Proforma invoice at the top (Duebolt prints this automatically) and a proforma number (PRO-0001…).
- Your business details and registration numbers, and the buyer's.
- A full description of the goods or services: quantity, unit price, and for goods, HS or HSN codes, weight and country of origin if the buyer needs them for customs.
- Tax shown separately, the total, and the currency.
- Payment details and terms: how much in advance, how much on delivery.
- Delivery terms and the date the prices are valid until.
Proforma vs commercial invoice vs invoice
| Proforma invoice | Commercial invoice | Invoice (tax invoice) | |
|---|---|---|---|
| When | Before the sale is final | When goods ship abroad | After supply |
| Binding | No, it's an offer in invoice form | Yes, declares the shipment | Yes, amount owed |
| Used for | Prepayment, LC, approvals | Customs clearance, duties | Payment and tax records |
| Buyer can claim tax credit | No | Depends on the country | Yes, if it meets the rules |
A proforma is closer to a quote than to an invoice: if the deal changes, you send a new proforma.
Proforma invoices in India
Searches for proforma invoices are high in India because they're everyday paperwork for suppliers and exporters. Under GST, a proforma is not a tax invoice: it isn't reported in your GST returns and the buyer can't claim input tax credit on it.
If the buyer pays an advance against your proforma, GST rules expect you to issue a receipt voucher for it, and a tax invoice when you actually supply. For exports, buyers abroad commonly ask for a proforma to arrange their letter of credit or remittance, and you issue the export invoice at shipment. Duebolt handles INR, GSTIN, UPI and bank details for India; for regular GST invoices see the India invoice generator.
Last checked October 23, 2026.