Free Proforma Invoice Template

What Is a Proforma Invoice?

A proforma invoice is a preliminary invoice a seller sends before the sale is final. The name comes from the Latin for "as a matter of form": it is shaped like an invoice, but it is a quote rather than a bill. It lists the goods, the quantities, and the prices you expect to charge, but it does not ask anyone for money yet.

The single most important thing to understand is what a proforma is not. It is not a tax invoice. It is not a demand for payment. The buyer does not record it as a payable and the seller does not record it as a sale. It has no accounting value on its own. That is why a good proforma states this in plain language on its face, and why this tool prints a disclaimer on every proforma it makes.

Because the sale is not yet agreed, the prices on a proforma are provisional. Sellers give the document a validity or expiry date, often 30 days, so the buyer knows how long the quoted prices hold. Once the buyer confirms the order, the seller replaces the proforma with a real commercial or tax invoice.

The US government trade office explains the document in the same terms. See the trade.gov guide to the pro forma invoice and the Investopedia definition of a pro forma invoice for the authoritative descriptions this tool follows.

When to Use a Proforma Invoice

A proforma is used before the sale is finalised. There are five common cases, and they all share the same feature: the price is still provisional.

1. A firm quote. You give a prospective buyer a document that looks like the final invoice so they can see the full cost, including shipping, before they commit.
2. Advance or prepayment. Many exporters ask for a deposit or full prepayment before they ship. The buyer pays against the proforma, and the commercial invoice follows once the goods are ready.
3. A letter of credit. Banks that open a letter of credit need a proforma invoice to set the terms and the amount before the goods move.
4. An import licence or permit. Some countries require an importer to obtain a licence before certain goods can enter. The licence application needs a proforma showing what is being imported and its value.
5. Provisional customs valuation. Customs can use a proforma to estimate the duties and taxes on a shipment before the final commercial invoice exists. This is an estimate, not the final assessment.

In none of these cases is the proforma a completed sale. It is the document that gets the deal moving.

How to Fill Out a Proforma Invoice

This simple proforma invoice template walks through each block in order. Here is what goes in each one.

1. Your business (seller). Your legal business name, full address, and email. For an international quote, add your tax, EORI, or VAT registration number.
2. Buyer. The legal name and full address of the prospective buyer. Add their tax or EORI number for a cross-border quote.
3. Proforma number and date. Use your own numbering. This tool defaults to a PI- prefix so a proforma is never mistaken for a commercial invoice or a tax invoice.
4. Valid Until date. The date the quoted prices lapse. This is the field that makes a proforma a proforma: the prices are provisional, so they expire.
5. Line items. One row per product. Give a plain description, the quantity, and the unit price. For an international quote you can also add the HS tariff code, the country of origin, the quantity unit, and the net weight per unit.
6. Charges. Freight, insurance, and any other named charge such as packing, each entered on its own line so the buyer can see them.
7. Disclaimer. The statement that marks the document as a proforma. The default wording says it is not a tax invoice and not a demand for payment. You can edit it to match your local phrasing.
8. Notes. Your advance-payment or bank instructions, and anything else the buyer needs to confirm the order.

A Worked Example

Say you are quoting a buyer for ten benchtop meters at $250.00 each, and you will ship them for a flat freight charge of $120.00.

• Ten units at $250.00 each is a subtotal of $2,500.00.
• Add freight of $120.00.
• The proforma total is $2,620.00.

There is no sales tax on this quote, because a proforma records no completed sale. The total is simply the goods value plus the itemised freight. This tool computes the subtotal and total for you as you type, and prints the freight as its own line so the buyer sees exactly what makes up the $2,620.00.

Proforma Invoice vs Commercial Invoice

These two documents look almost identical, which is why they are so often confused. The difference is timing and purpose.

A proforma invoice comes first. It is sent before the sale is final, its prices are provisional, and it carries no signed declaration. It is a quote, used to arrange payment, an import licence, or a letter of credit.

A commercial invoice comes second. It is issued after the sale is agreed, it states the actual price paid, it is the document customs assesses duty against, and it carries a signed declaration from the seller. It has real accounting and legal weight.

In short: the proforma is the estimate, and the commercial invoice is the record of the completed sale. If you need the second document, use our commercial invoice generator instead. If you just need a plain quote with no customs fields, the quote generator is simpler.

International Proforma Invoices and Incoterms

If your quote crosses a border, the buyer and their customs broker will want to estimate duties before they commit. You can add the international trade fields to any proforma:

• HS tariff codes per line, so the buyer can look up the duty rate. Six digits is the international minimum set by the World Customs Organization.
• Country of origin per line, which also affects the duty rate.
• An Incoterms 2020 rule, which sets who pays for freight and insurance and where the risk passes. There are exactly eleven rules. Seven work for any mode of transport: EXW, FCA, CPT, CIP, DAP, DPU, and DDP. Four are for sea and inland waterway transport only: FAS, FOB, CFR, and CIF.
• Shipment weights and package counts, so the carrier can quote the freight.

When you leave these fields blank, they disappear from the document, so a domestic proforma stays clean and short. Fill them in and the customs columns appear, in preview and in the exported PDF.

Tips for a Clean Proforma

• Mark it clearly. The title should say PROFORMA INVOICE, not INVOICE. This tool does that automatically.
• Keep the disclaimer. It protects both sides by making clear the document is not a bill.
• Set a realistic validity. Thirty days is common. If your costs move quickly, use a shorter window.
• State your payment terms. If you want a deposit, say so in the notes, with the bank details.
• Number it separately. Do not reuse your invoice numbers. A PI- prefix keeps your books tidy.

Frequently asked questions

What is a proforma invoice?

A proforma invoice is a preliminary invoice a seller sends before the sale is final. It looks like a normal invoice and lists the goods, quantities and prices, but it is a quote, not a bill. It is not a tax invoice and it is not a demand for payment. Buyers use it to arrange payment, apply for an import licence, or open a letter of credit, and customs can use it for a provisional valuation of the goods.

What is the difference between a proforma invoice and a commercial invoice?

A proforma invoice is sent before the sale is final. It is a quote used to arrange payment, an import licence, or a letter of credit, its prices are provisional, and it carries no signed declaration. A commercial invoice is issued after the sale is agreed, states the actual price paid, is the document customs assesses duty against, and carries a signed declaration. The proforma comes first; the commercial invoice replaces it once the order is confirmed.

Is a proforma invoice a legal document or a demand for payment?

No. A proforma invoice is not a demand for payment and it is not a tax invoice, so the buyer does not record it as a payable and the seller does not record it as a sale. It has no accounting value on its own. It becomes a real invoice only when you issue a commercial or tax invoice after the order is confirmed. This tool prints a disclaimer on the document that states this in plain language.

When should I use a proforma invoice?

Use one before the sale is finalised. The common cases are giving a buyer a firm quote, arranging an advance or prepayment, supporting a letter of credit at the bank, applying for an import licence or permit, and giving customs a provisional valuation so they can estimate duties and taxes. In every case the price is still provisional, which is why the document shows a valid-until date.

Does a proforma invoice expire?

It usually does. Because the prices on a proforma are provisional, sellers give it a validity or expiry date, often 30 days. After that date the quote lapses and prices can change. This tool has a Valid Until field that prints in the document header so the buyer knows how long the quoted prices hold.

What should a proforma invoice include?

It should carry your business and the buyer's details, a proforma number and date, a valid-until date, a description of the goods with quantities and unit prices, any freight or insurance charges, and the total. For an international quote you can add HS tariff codes, country of origin, an Incoterms 2020 rule, and shipment weights so the buyer and their customs broker can estimate duties. Mark the document clearly as a proforma invoice and state that it is not a tax invoice.

How many Incoterms 2020 rules are there?

There are exactly eleven. Seven work for any mode of transport: EXW, FCA, CPT, CIP, DAP, DPU and DDP. Four are for sea and inland waterway transport only: FAS, FOB, CFR and CIF. DAT was renamed DPU in the 2020 edition, and DDU and EXQ were withdrawn in earlier editions, so none of those three should appear on a current proforma or commercial invoice.

Is this proforma invoice generator free?

Yes. It is completely free, needs no signup, and creates unlimited proforma invoices. Everything runs in your browser, so your business, buyer and product data never leaves your computer. The exported PDF carries no watermark and no branding.