A proforma gives a customer the proposed order details and amount before the final invoicing stage. It can help the buyer arrange approval or an advance payment. Its appearance may resemble an invoice, so its status needs to be obvious at the top of the document.
For a UK proforma used this way, HMRC says it cannot support an input VAT claim and should carry the wording “This is not a VAT invoice.” If the supply takes place or payment is received, a proper VAT invoice is then needed where the VAT rules require one. See VAT Notice 700, section 17.3.
Decide whether a proforma is the right document
Use a quote or estimate when the customer needs to decide whether to buy. Use a proforma when you need an identifiable order summary or advance-payment request before the final invoice. Use an invoice when you are issuing the bill under the agreed transaction and tax process. A receipt records payment received; it does not replace the other documents automatically.
Document labels do not settle every contractual question. What was agreed, the terms and the transaction itself still matter. For international shipping, the courier or customs authority may require a particular commercial or proforma document with additional information. The simple service template below is not a customs declaration.
A copyable proforma template
Replace every bracketed entry and remove anything that does not apply. Keep the status label prominent in the exported file, not just in the email subject.
PROFORMA — THIS IS NOT A VAT INVOICE Reference: PF-[year]-[number] Prepared: [date] Offer/payment request valid until: [date, if agreed] Supplier: [legal name and any trading name] Address and contact: [details] Customer: [correct legal entity and address] Customer order reference: [if applicable] Proposed goods/services: [specific scope] Quantity/extent: [units, hours or project stage] Price: [amount and currency] Proposed tax treatment: [where appropriate and confirmed] Requested payment: [amount and currency] Payment instructions: [verified details and reference] What happens next: [e.g. scheduling after funds clear] Expected delivery/service date: [date or agreed condition] Related quote/order: [reference and version] Status: Proforma/payment request. Not evidence of payment. Final invoicing will follow the applicable transaction rules.
Worked example: one order, two document stages
Fictional scenario: Cedar Workshop offers a £400 training session, with 25% payable before scheduling. The example omits VAT to keep attention on the document trail; it is not a tax determination.
- The customer accepts quote Q-026 for the session and the agreed advance-payment arrangement.
- The supplier sends PF-2026-017 requesting £100, clearly marked as a proforma.
- The supplier records the actual receipt of £100 against that order when it reaches the bank. The proforma itself is not proof the money arrived.
- The supplier issues the appropriate invoice documentation under its tax process and links it to PF-2026-017 and Q-026.
- The final account shows the £400 agreed charge, the £100 already paid and the £300 balance, with any applicable tax dealt with correctly.
The important control is that the £100 does not become a second sale simply because both documents are in a folder. Match the order, payment and invoice in the records. Advance payments can have tax consequences before work is delivered; do not postpone that check until the final document.
Keep proforma references separate and traceable
A prefix such as PF makes it easier to distinguish proposed requests from issued invoices. Record the reference, customer, requested amount, linked order, payment received and final invoice reference. If the customer changes the order, retain the earlier version and identify the revision rather than sending two apparently current requests.
When an order expires or is cancelled, mark the proforma accordingly in your own log. Do not show it as an overdue sales invoice merely because its proposed payment date has passed. Whether anything is owed depends on the agreement and facts.
Check before sending
- Can the reader tell immediately that this is a proforma?
- Does the requested payment match the accepted order?
- Are currency, timing and conditions clear?
- Are bank details verified and the payment reference usable?
- Who will issue the next document and match the payment?
For the next stage, see the VAT invoice field guide or the general invoice template. Talentra’s invoice generator is designed to produce invoices; do not send its standard Invoice heading as a proforma without preparing a correctly labelled document.
Published by Talentra Solutions. Revised 19 October 2026: clarified the VAT distinction and added an order-to-payment example that avoids double billing. Examples are fictional and the checklists are editorial guidance. Report an error or suggest a correction.