- Proforma invoices are preliminary documents sent to buyers before a delivery of goods or provision of services
- They provide details of the purchase and terms of the transaction
- Proformas are not official documents and represent an informal agreement
- They are used to understand the details before making a binding agreement with the seller
- Proformas are not mandatory to use
- Invoices are legal documents that evidence a transaction and can be used to claim VAT
- Proformas do not have an invoice number and should state that they are a proforma invoice
- Contents of a proforma include business details, customer details, pricing, terms of sale, and payment terms
- Proformas provide buyers with an estimate to decide whether to proceed with a transaction
- Proformas do not create a tax point and the recipient cannot recover input tax
- Using proformas can defer when VAT is payable to HMRC
Source: deeksvat.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
