Proforma Invoice — the preview of the bill
A proforma invoice shows the buyer exactly what they'll be charged before the sale completes — for customs, deposits, and payment approvals. Here's what it is, when it's used, and a free maker above to build yours.
What it is — and isn't
A proforma looks like an invoice on purpose: same layout, same line items, same taxes and total. What it lacks is legal force. It records no sale, demands no payment, and triggers no tax obligation — the buyer can't claim input tax credits from it, and it never enters the books. Its whole job is certainty: “when this completes, this is precisely what the invoice will say.” The final, real invoice is issued at delivery and replaces it.
Invoice vs proforma vs quote
| Quote / Estimate | Proforma invoice | Invoice | |
|---|---|---|---|
| When | Before the buyer agrees | After agreement, before delivery | At/after delivery |
| Payment owed? | No | No — preview only | Yes |
| Tax document? | No | No | Yes — books, GST/HST, credits |
| Typical use | Winning the job | Customs, deposits, AP approval | Getting paid |
Making one properly
Use the generator above like a normal invoice — your business block, the client, itemized lines with real quantities and prices, the correct tax so the buyer sees the true landed total. Then make its status unmistakable: put “PROFORMA INVOICE — not a tax invoice” in the notes, number it distinctly (PRO-0001 style), and state how long the prices hold. For a deposit request, add a line for the deposit amount in the terms. When the goods ship or the work completes, rebuild it as the real invoice — same lines, real number — and send that for payment.
Where you'll be asked for one
Exports: customs brokers and border agencies assess duties from a proforma before the commercial invoice exists. Corporate buyers: accounts-payable teams often can't approve a payment without an invoice-shaped document — the proforma unlocks the deposit. Financing and letters of credit: banks want the settled numbers in advance. For the pre-agreement stage, send an estimate instead — and once delivered, the invoice generator produces the final bill with the taxes done right.
Frequently asked questions
What is a proforma invoice?
A preliminary bill sent before goods or services are delivered — it shows the buyer exactly what the final invoice will look like (items, quantities, prices, taxes) without being a demand for payment or a tax document. Think of it as a formal preview: 'this is what you will be charged.'
What's the difference between a proforma invoice and an invoice?
A real invoice records a completed sale, goes into the books, and creates an amount owed. A proforma is issued before the sale completes — nothing is owed yet, no tax obligation is triggered, and the buyer can't claim input tax credits from it. The final invoice replaces it at delivery.
What's the difference between a proforma invoice and a quote?
Degree of commitment and detail. A quote proposes a price that may still move; a proforma is the settled version — final layout, exact quantities and taxes — often sent when the buyer has already said yes and needs the document for payment approval, customs, or financing.
When is a proforma invoice used?
International shipments (customs authorities use it to assess duties before the commercial invoice exists), advance payments and deposits, buyers whose accounts-payable departments need a document to approve payment, and letters of credit. Domestically it's common whenever a client needs 'something official' before you can issue the true invoice.
How do I make a proforma invoice?
Build it like a normal invoice — seller and buyer blocks, itemized lines, taxes, total — and label it clearly: title or note 'PROFORMA INVOICE', a reference like PRO-0001, and a validity date. In the generator above, add a note such as 'Proforma — not a tax invoice; for customs/approval purposes' and use its estimate mode's Valid Until if you need an expiry.
Does a proforma invoice trigger taxes or bookkeeping?
No. It creates no receivable, no GST/HST obligation, and no entry in the buyer's payables — that all happens when the real invoice is issued at delivery. That said, show the taxes on the proforma so the buyer sees the true final amount coming.
Is this proforma invoice maker free?
Yes — unlimited documents, no signup, no watermark, PDF generated on your device. When the sale completes, recreate it as the final invoice in seconds (your line items and client are remembered locally) and send that for payment.