Proforma Invoice vs Tax Invoice
A proforma invoice is a preliminary quote-like document sent before a sale is completed. A tax invoice is the final legal record of a sale that you issue after delivery and use for tax.
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Proforma invoice
Sent before goods or services are delivered. It lets the buyer approve prices, arrange payment or clear customs. It is not a demand for payment.
Tax invoice
Issued after the sale. It carries tax details and is used for accounting and input tax credit.
Key differences
- Timing: Proforma before the sale; tax invoice after.
- Purpose: Proforma confirms terms; tax invoice records the sale.
- Tax records: Only the tax invoice is recorded for tax.
When to use a proforma
For advance payments, export shipments, customs clearance and large orders that need approval.
Frequently asked questions
Generally no, unless accepted as a contract.
No, use the final tax invoice.
The final invoice should reflect the agreed proforma unless things changed.
General information, not tax, legal or accounting advice. Rules and rates change; confirm with a qualified professional. Only document real transactions.