What Is a Proforma Invoice? Uses, Examples & How to Create One

What Is a Proforma Invoice?

A proforma invoice is a preliminary document sent to a buyer before a sale is completed. It looks like a regular invoice but is clearly labeled "Proforma Invoice" and is not a legal demand for payment.

Think of it as a formal quote or estimate in invoice format.

Proforma Invoice vs Regular Invoice

When to Use a Proforma Invoice

International Trade

Customs authorities require proforma invoices to calculate import duties before goods are shipped. It declares the value, quantity, and description of the goods.

Pre-Sale Agreements

Before a big contract is signed, a proforma lets both parties agree on the terms—price, quantity, delivery date—before committing legally.

Advance Payments / Deposits

Use a proforma to request a deposit. Once the full payment is received, send a final tax invoice.

Import/Export Documentation

Airlines and freight forwarders use proforma invoices to process shipments and calculate insurance values.

What to Include in a Proforma Invoice

A proforma invoice should contain:

• The words "Proforma Invoice" prominently at the top
• Your business details (name, address, contact)
• Buyer's details
• A unique proforma number (e.g., PI-2026-001)
• Date of issue and validity period ("Valid for 30 days")
• Itemized list of goods or services
• Unit prices, quantities, and totals
• Currency used
• Incoterms (for international trade, e.g., FOB, CIF)
• Shipping and insurance costs (if applicable)
• Country of origin

Proforma Invoice Example

*"This proforma invoice is valid for 30 days. Final invoice will be issued upon order confirmation."*

How to Create a Proforma Invoice

• Use [Invoice-Quickly's generator](/generator)
• Add your items, quantities, and prices
• In the Notes field, add: *"PROFORMA INVOICE — Not a tax invoice. Valid for [X] days."*
• Download the PDF

It takes less than 2 minutes, and your proforma looks completely professional.

Create a proforma invoice for free →

Frequently Asked Questions

Is a proforma invoice legally binding?

No. A proforma invoice is not a legal demand for payment. It is a preliminary document used to declare the intent of a sale, provide a cost estimate, or facilitate customs clearance. Only a final commercial or tax invoice creates a legal obligation for the buyer to pay.

Can I convert a proforma invoice into a regular invoice?

Yes, and this is the standard workflow. Once the buyer confirms the order, you issue a final tax invoice with the same details (or updated quantities and prices). Reference the original proforma number on the final invoice for clear record-keeping on both sides.

Do I need a proforma invoice for domestic sales?

Proforma invoices are most commonly used in international trade for customs and import duty purposes. However, they can be valuable domestically for large custom orders, manufacturing projects, or any situation where providing a formal, detailed quote in invoice format helps both parties agree on terms before committing.

What are Incoterms and why do they appear on proforma invoices?

Incoterms (International Commercial Terms) are standardized trade definitions that specify who is responsible for shipping costs, insurance, customs duties, and risk at each stage of delivery. Common terms include FOB (Free on Board), CIF (Cost, Insurance, Freight), and EXW (Ex Works). Including the correct Incoterm on your proforma prevents expensive disputes about delivery costs.