Pro forma invoice: what is it and when do you use one?

The term "pro forma invoice" causes confusion: the word "invoice" suggests a payment obligation, but a pro forma invoice is legally and fiscally not an invoice at all. It's a preliminary document, often for information or approval purposes, with no accounting consequences.

What exactly is a pro forma invoice?

"Pro forma" is Latin for "for the sake of form". A pro forma invoice shows in advance what the final invoice will look like — with amounts, items and any applicable VAT — but it isn't meant to be paid, and doesn't need to be included in your VAT return. No statutory payment term applies to it.

When do you use a pro forma invoice?

• For exports: customs authorities often request a pro forma invoice to assess the value of goods, before the actual shipment and invoicing take place.
• For prior approval: you send a customer a preview of the final invoice, so they can first check the amounts and specifications or have them approved internally, for example by the finance department.
• For a financing application: a customer needs an indication of the costs to apply for a loan or subsidy, for example, before the work is actually carried out.
• To discuss a deposit or advance payment: to show the total picture before a deposit invoice follows.

Pro forma invoice versus quote

A quote is an offer: the customer can accept or decline it, and there's no agreement yet. You usually draw up a pro forma invoice only after a (verbal or written) agreement already exists, as a final check before you send the definitive, legally binding invoice.

What must be on a pro forma invoice?

Include the same details as on a regular invoice: your company details, customer details, description of goods or services, amounts and (if applicable) VAT. The crucial difference is that you clearly and prominently state "PRO FORMA INVOICE" or "NOT FOR PAYMENT", and don't use a number from your regular invoice sequence — otherwise it creates confusion with your actual records.

VAT treatment

Because a pro forma invoice doesn't register an actual supply of goods or services, you don't need to include it in your VAT return, and no VAT liability arises. That only arises the moment you send the definitive invoice.

Accidentally sent a pro forma invoice with a number from your regular invoice sequence? Don't reuse that number — instead, deliberately leave it open in your records with a note. This keeps your numbering sequential and explainable during an audit.

From pro forma to definitive invoice

Once the customer has agreed and the goods or services have actually been delivered, you create the definitive invoice with a new, sequential invoice number. You can refer to the pro forma invoice in the description, so the customer immediately recognises the connection.

With FactuurMakenOnline, you create a document as a pro forma in a few clicks, and later convert it into a definitive, legally valid invoice with a single click.