Proforma Invoice Template UK: What It Is, and What It Definitely Isn't
A proforma invoice is not an invoice, does not create a VAT liability, and cannot be used to reclaim VAT. Here is a free proforma invoice template and the rules that make the distinction matter.
The Talentra Editorial Team
Research and editing
Published
7 min read
What is a proforma invoice?
A document sent before a supply takes place, setting out what will be provided and what it will cost. It looks like an invoice but is not a demand for payment against a completed supply — it is closer to a firm quotation presented in invoice form, usually so the customer can raise a purchase order or arrange payment in advance.
A proforma invoice is one of those documents that causes trouble precisely because it looks familiar. It has the layout of an invoice, the totals of an invoice, and often the word "invoice" in its title — and it is not one.
Getting this wrong has real consequences in both directions: a customer who tries to reclaim VAT from a proforma, and a supplier who books one as a sale.
The template
PROFORMA INVOICE
This is not a VAT invoice.
[Your business name]
[Street address]
[Town, county, postcode]
[VAT registration number — if registered]
[email] · [phone]
FOR
[Customer name / registered company name]
[Address]
[Attn: contact name]
Proforma number: PF-2026-031
Date: 3 September 2026
Valid until: 3 October 2026
Then the items as a table:
| Description | Qty | Unit price (excl VAT) | Amount |
|---|---|---|---|
| [Description of the goods or services to be supplied] | 1 | 1,850.00 | 1,850.00 |
| [Second item] | 2 | 320.00 | 640.00 |
| Total excluding VAT | 2,490.00 | ||
| VAT @ 20% (if applicable) | 498.00 | ||
| TOTAL PAYABLE | 2,988.00 |
And the terms block:
TERMS
This proforma is valid for 30 days from the date above.
Payment in advance is required before work begins / goods are
despatched.
A VAT invoice will be issued once payment is received and the supply
has been made.
HOW TO PAY
Bank: [Bank name] Account name: [As on the account]
Sort code: [00-00-00] Account number: [12345678]
Reference: PF-2026-031
Three lines in that template are the ones that actually matter, and they are the ones most templates omit.
"This is not a VAT invoice." Put it directly under the title, where nobody can miss it. HMRC expects proformas to be clearly marked this way, and it protects your customer from an incorrect reclaim.
A separate numbering series. PF-2026-031, not 2026-031. Proformas must never share a sequence with your real invoices, or your invoice numbering — and therefore your audit trail — is compromised.
A validity date. A proforma without an expiry is an open-ended price commitment. Thirty days is conventional.
Proforma, quotation, invoice: the actual differences
| Quotation | Proforma invoice | Invoice / VAT invoice | |
|---|---|---|---|
| When it is sent | Before the supply | Before the supply | After (or on) the supply |
| What it is | An offer | A firm statement of what will be supplied and charged | A demand for payment |
| Creates a debt? | No | No | Yes |
| Creates a VAT liability? | No | No | Yes |
| Customer can reclaim VAT? | No | No | Yes, from a valid VAT invoice |
| Goes in your sales ledger? | No | No | Yes |
| Numbering | Own series | Own series | The official sequence |
| Typical purpose | Winning the work | Letting the customer raise a PO or pay in advance | Getting paid and recording the sale |
The middle column is the one people collapse into the third. It should not be.
When a proforma is the right document
The customer needs to raise a purchase order. This is the most common legitimate use. Procurement systems often cannot create a PO without a document that looks like an invoice, and you cannot issue a real invoice before supplying anything. A proforma solves exactly that.
You require payment in advance. New customer, no credit history, or a job that requires you to buy materials up front. The proforma states the amount and gives them something to pay against, without you having to book a sale that has not happened.
International shipments. Customs authorities frequently want a proforma to value a consignment before a commercial invoice exists — for samples, replacements, or goods sent for repair.
Confirming a variable order. Where the final quantity or specification is still settling, a proforma pins down the current position in a form both sides can act on.
When it is the wrong document
After you have supplied the goods or services. At that point you owe your customer a proper invoice. Sending a proforma instead delays their ability to process payment and, if they are VAT-registered, prevents them reclaiming.
As a way to defer VAT. The tax point is set by the rules on supply and payment, not by which document you chose to send. Receiving payment against a proforma creates a tax point on the date the money arrives, and a VAT invoice must follow. A proforma does not postpone anything.
As a substitute for a contract. It sets out price and scope; it does not cover liability, intellectual property, termination or anything else that matters when a project goes wrong.
The VAT position, precisely
You do not account for output VAT on a proforma. It is not a VAT invoice and does not trigger a VAT liability by itself.
Your customer cannot reclaim input VAT from it. They need a valid VAT invoice, with all the mandatory fields — your VAT number, the tax point, VAT per rate, the sterling VAT total. A proforma is not that document, however complete it looks.
Payment received against a proforma does create a tax point for the amount received. That is the point people miss. If a customer pays your proforma on 20 September, you have a tax point on 20 September, and you must issue a proper VAT invoice and account for the VAT in the corresponding return. The proforma did not defer anything — the payment moved the tax point forward.
The clean sequence is:
- Send the proforma
- Customer pays, or raises a PO
- You supply the goods or services
- You issue a VAT invoice referencing the proforma number
- That invoice goes in your sales ledger and VAT return
Step 4 is the one that gets forgotten, usually because the money already arrived and it feels finished.
Practical points
Reference the proforma on the real invoice. "Per proforma PF-2026-031." It lets the customer match the two, and it means your own records join up.
Keep proformas out of your accounting software's sales list. If your software supports quotes or estimates, raise proformas there rather than as draft invoices — draft invoices have a habit of being converted accidentally.
Do not chase a proforma as a debt. It is not one. If the customer does not proceed, the proforma simply lapses. Chasing it as an overdue invoice is both wrong and a bad look.
Spelling. "Proforma", "pro forma" and "pro-forma" are all in use and none is wrong. Be consistent within your own documents.
A short checklist
- Titled "Proforma invoice"
- Marked "This is not a VAT invoice"
- Its own reference series, separate from real invoices
- A validity or expiry date
- Clear description of what will be supplied
- Prices excluding VAT, with VAT shown if applicable
- Payment instructions, if you are asking for payment in advance
- A statement that a VAT invoice will follow
- Not entered in your sales ledger or VAT return
Our free invoice generator produces the real invoice you issue after the supply — the one that goes in your records. Change the invoice number prefix to PF- and add the "not a VAT invoice" line in the notes field if you want to use it for a proforma as well.
Related: the VAT invoice template, the self-employed and sole trader invoice template, the general invoice template, and the best invoice format for UK freelancers.
General information about UK practice as at the review date, not tax or legal advice. VAT treatment can turn on facts this guide cannot know — check GOV.UK and speak to an accountant. See our disclaimer.
Sources
Primary references used in this guide. Rules change — check the source directly if you are relying on it for a decision.
About this guide
Talentra's editorial team researches, drafts and fact-checks every guide on this site, and revisits each one when the underlying rules change. This page was last reviewed on August 12, 2026. It is general information, not legal, tax or financial advice — see our disclaimer and editorial policy. Spotted something out of date? Tell us.