Proforma Invoice Format – Create One Online Free

A proforma invoice is a preliminary bill sent to a buyer before goods are delivered or services are performed. It looks like an invoice – items, prices, taxes and total – but it is a commitment to sell on those terms, not a demand for payment for a completed sale.

When to use a proforma invoice

• Advance payment – the buyer pays an advance against the proforma before you start work or dispatch.
• Quotations – a formal price offer that the buyer can approve internally.
• Purchase approvals – many schools, offices and companies need a proforma to raise a purchase order.
• Imports and exports – buyers use proforma invoices for import licences, letters of credit and customs estimates.

Proforma invoice vs tax invoice

What to include

• The words Proforma Invoice at the top (set as the document title).
• Your business and the buyer's details, a reference number and date.
• Item descriptions, quantities, prices and expected GST.
• Validity of the prices, delivery time and payment terms such as the advance required.
• A note that it is not a tax invoice.

When the buyer confirms and you supply the goods, issue a regular tax invoice with the GST invoice maker – you can keep the same template so both documents look consistent.

Proforma invoices for imports and exports

In international trade, a proforma invoice gives the buyer everything needed to arrange payment and paperwork before goods are shipped: a full description of the goods, quantities, unit prices, the currency, delivery terms, the expected shipping date and the seller's bank details. Buyers often use it to open a letter of credit or apply for an import licence, so accuracy matters – the final commercial invoice should match it.

Proforma invoice number and validity

Keep a separate number series for proforma invoices (for example PI/2026-27/001) so they're never confused with your tax invoices, and always state how long the prices are valid. If prices or quantities change, send a revised proforma with a new number rather than editing the old one.

1. Send the proforma invoice with prices and terms.
2. Receive the buyer's approval, purchase order or advance.
3. Supply the goods or services.
4. Issue the final tax invoice for the actual supply.

Common proforma invoice mistakes

• Using your tax-invoice number series – keep proforma numbers separate.
• Leaving out the validity period, so the buyer expects old prices months later.
• Forgetting delivery terms and timelines, which causes disputes after the order.
• Treating the advance received against a proforma as final – issue a proper tax invoice when you supply.

A clear, well-numbered proforma invoice makes approvals faster, especially for schools, companies and government buyers who need it before raising a purchase order.