Proforma Invoice

A Proforma Invoice is an estimated or preliminary bill of sale that is sent to buyers in advance of a shipment or delivery of goods. It acts as an underlying agreement between the seller and buyer regarding the terms of a sale.

Purpose

Unlike a standard tax invoice, a proforma invoice does NOT demand payment. It simply outlines what you will be charging for a product or service. This document allows the buyer to secure internal purchasing approvals, arrange for necessary financing, or arrange customs clearance (if importing).

Key Components

• Exact description of goods/services
• Estimated final price
• Shipping weights and dimensions
• Delivery terms

Proforma invoices cannot be used to reclaim GST or other tax credits because they technically don't represent a finalised sale.