What Is a Proforma Invoice?
A proforma invoice is a preliminary document that looks like an invoice but isn't a payment demand — it's a detailed estimate or quote in invoice format. Think of it as “here's what the invoice will look like” before the work is done or goods are delivered.
Proforma invoice vs regular invoice
When do freelancers use proforma invoices?
Requesting a deposit
Send a proforma for 50% upfront before starting a project. Once the client pays, issue the real invoice for that amount.
International clients needing cost approval
Large companies often need a proforma to get internal budget approval before a project can be authorised. The proforma goes to their finance team for sign-off.
Customs documentation
When shipping physical goods internationally, customs authorities require a proforma invoice to assess duties and taxes before the final invoice exists.
Cost estimate in invoice format
Some clients find a proforma easier to understand than a quote — it shows exactly what the final invoice will look like, with all the same fields filled in.
What to include on a proforma invoice
A proforma invoice contains all the same fields as a regular invoice with two key differences: it's clearly labelled “PROFORMA INVOICE” (not just “INVOICE”) and it states that figures are estimates.
- • Label: “PROFORMA INVOICE” clearly at the top
- • Proforma number (e.g. PRO-001) — separate from your invoice sequence
- • Date issued
- • Validity period — “This proforma is valid for 30 days”
- • Your details and client details
- • Line items with descriptions, quantities, and rates
- • Estimated totals (subtotal, tax estimate, grand total)
- • Note stating it's not a tax invoice — “This is not a VAT invoice” or similar
Is a proforma invoice legally binding?
No. A proforma invoice is not a legal payment demand and does not create a tax point. Your client is not obligated to pay based on a proforma alone — it's a pre-sale document.
Once the work is complete (or goods delivered), you issue the actual invoice. That's the legally binding payment demand. If you collected a deposit based on a proforma, the final invoice typically shows the total, deducts the deposit already paid, and shows the balance due.
Important: VAT registered businesses
A proforma invoice does NOT create a VAT tax point. You can't reclaim VAT on a proforma. The actual (final) invoice is required for VAT purposes — for both you and your client.
Proforma invoice example wording
PROFORMA INVOICE
PRO-2026-001 | Issued: 13 June 2026 | Valid until: 13 July 2026
This document is a proforma invoice and is not a tax invoice or demand for payment.
Website redesign — 5 pages
Design: 20hrs × $85/hr = $1,700.00
Development: 30hrs × $95/hr = $2,850.00
Estimated total: $4,550.00
Final invoice will be issued upon project completion. Figures may vary if scope changes.
How to create a proforma invoice
The easiest method: create it the same way you'd create a regular invoice, then:
- 1. Change the title from “INVOICE” to “PROFORMA INVOICE”
- 2. Use a separate numbering sequence (PRO-001, not INV-001)
- 3. Add a validity date and a note that it's not a tax invoice
- 4. Mark amounts as “estimated” where appropriate
SwiftBill lets you create a standard invoice and add a custom note in the notes field — enough to turn it into a clear proforma document. When the project is done, create the actual invoice with the confirmed amounts and a separate invoice number.
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SwiftBill generates professional PDF invoices — and proformas — free forever.