Proforma Invoice: Meaning, Format & How to Create One
A proforma invoice is a preliminary invoice sent to a buyer before a sale is finalised — a professional quotation showing exactly what will be billed. This guide covers what it is, how it differs from a tax invoice, what to include, and how to create one free in a couple of minutes.
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What is a proforma invoice?
The term comes from the Latin pro forma — “for the sake of form.” It is a document a seller issues to a prospective buyer that lists the goods or services, quantities, prices and applicable taxes, along with the expected total. Crucially, it is not a demand for payment and does not record a completed transaction — it is a commitment to supply on the stated terms. (You may also see it misspelled “performa invoice” — same document.)
When do you use one?
- To send a quotation or estimate a customer can approve before you deliver.
- To request an advance payment or confirm an order.
- For exports and customs — declaring the value of a shipment before shipping.
- To help the buyer arrange internal purchase approvals or financing.
Proforma invoice vs. tax invoice
| Proforma invoice | Tax invoice |
|---|---|
| Issued before the sale | Issued after the sale is confirmed |
| A quotation — not legally binding | Legally binding record of the transaction |
| No entry in your accounts | Recorded in your books of accounts |
| Cannot be used to claim GST input credit | The document GST input credit is claimed on |
What to include (the format)
- Seller & buyer details — name, address and tax ID (GSTIN, VAT number, etc.).
- Proforma invoice number & date, plus a valid-until date.
- Line items — description, quantity, rate, tax %, and amount.
- Totals — subtotal, discount, tax breakdown (e.g. CGST/SGST or IGST for GST), and the grand total.
- Amount in words, and terms / notes (validity, advance required, delivery time).
GST on a proforma invoice (India)
A proforma invoice can show indicative GST so the buyer sees the expected total, but it is not a tax document — the buyer claims input tax credit only on the final tax invoice. For intra-state supply, GST is split into CGST + SGST; for inter-state supply it is charged as IGST. proformapad handles all three, plus VAT, sales tax, or a custom tax label for other countries.
How to create a proforma invoice with proformapad
- Open the builder and enter your business and client details.
- Add line items with quantity, rate and tax; set currency and tax model.
- Upload your logo and pick a template (Minimal, Classic, or Modern).
- Download as PDF, Word, or Excel.
It is free, requires no signup, and runs entirely in your browser — your invoice data never leaves your device.
→ Create your proforma invoice now
More proforma invoice guides
- Proforma invoice format & free template — every field explained, with Excel/Word/PDF download.
- Proforma invoice vs tax invoice — when to use each and the GST-credit rules.
- GST proforma invoice format (India) — CGST/SGST vs IGST, explained.
Frequently asked questions
What is a proforma invoice?
A proforma invoice is a preliminary bill of sale sent to a buyer before goods or services are delivered. It states the seller and buyer details, an itemised list with quantities, rates and taxes, and the total — but it is a quotation, not a demand for payment, and does not record a completed sale.
Is 'performa invoice' or 'proforma invoice' correct?
The correct spelling is 'proforma invoice' (from the Latin pro forma, meaning 'for the sake of form'). 'Performa invoice' is a common misspelling; both refer to the same document.
What is the difference between a proforma invoice and a tax invoice?
A proforma invoice is issued before a sale as an estimate or quotation and creates no accounting or tax liability. A tax invoice is issued after the sale is confirmed, is legally binding, records the transaction in your books, and (in India) is the document on which GST input credit is claimed.
Is a proforma invoice valid for GST?
No. A proforma invoice is not a valid document for claiming GST input tax credit. It can show indicative GST so the buyer knows the expected total, but the buyer claims credit only on the final tax invoice issued after the sale.
What should a proforma invoice include?
Seller and buyer details (name, address, tax ID such as GSTIN/VAT number), a unique proforma invoice number and date, a validity date, an itemised table (description, quantity, rate, tax %, amount), the subtotal, taxes, grand total, amount in words, and payment terms or notes.
How do I create a proforma invoice for free?
Use the proformapad builder: fill in your business and client details, add line items with quantity, rate and tax, pick a template, then download as PDF, Word, or Excel. It is free, needs no login, and everything is generated in your browser.
Can I make a proforma invoice in Excel or Word?
Yes. proformapad exports your invoice as an Excel (.xlsx) spreadsheet or a Word (.docx) document, as well as PDF — so you can edit or share it in whichever format you need.
Does my data stay private?
Yes. proformapad has no backend for your invoice data — everything is created and stored in your own browser (localStorage). Nothing is uploaded to a server, and there is no account or login.