Proforma invoice: meaning, information included and uses

Invoicing is an essential part of business financial management. However, before issuing a final invoice, it is often useful or even necessary to provide a preliminary document outlining the products or services offered and the agreed terms. This is where the proforma invoice comes into play.

What is a proforma invoice?

A proforma invoice is an informational document that provides a detailed estimate of the goods or services a supplier intends to deliver to a client. Although its format is almost identical to a standard commercial invoice, it has no tax or accounting value, meaning it does not create tax obligations and should not be recorded in the accounting books. In other words, it is a draft invoice that allows both parties to review and agree on the terms before formalizing the transaction with a final invoice.
This type of document usually includes the details of both the issuer and the client, a detailed description of the products or services, quantities, unit and total prices, as well as payment terms. It must also clearly state that it is a "proforma invoice" and that it does not constitute a legally valid invoice for VAT or other tax purposes.

What is a proforma invoice used for and when is it issued?

The main purpose of a proforma invoice is to act as a preliminary document before issuing the final tax invoice. It is especially useful when presenting a formal offer to a client without triggering tax obligations. It is commonly used by freelancers, small businesses and in international trade transactions.
One of its most frequent uses is to request an advance payment. In these cases, issuing a proforma invoice allows the supplier to specify the amount due without having to declare the income until the payment is actually received and the final invoice is issued. This helps avoid paying VAT in advance on income that has not yet been collected.
It is also used to provide the client with a detailed description of the work or service agreed upon, allowing for changes to be discussed before generating the official invoice. By enabling adjustments without the need to issue credit notes, errors are reduced and administrative processes are streamlined. In this sense, it is particularly useful when planning complex projects such as those managed by professionals trained, for example, in a Master in Project Management.
In international operations, a proforma invoice may be required to justify the shipment of goods to customs authorities, even in cases involving gifts, samples or repairs. It is common for the proforma invoice to indicate the value of the goods, the purpose of the shipment and the recipient’s details. For this reason, it is part of the technical knowledge acquired, for example, when studying a Master in Supply Chain Management & Logistics.

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How to create a proforma invoice template

Proforma invoices are not directly regulated by law in Spain, and are used in a practical and operational way based on professional practice to:

• Avoid errors before issuing the final invoice, eliminating the need for later corrections.
• Avoid charging VAT before receiving payment, as this tax only applies once the final invoice is issued.

Therefore, there are no strict legal requirements regarding their format. However, this document typically follows the same structure as a standard invoice, including the following elements:

• Issuer identification: name or company name, tax ID, address and contact details.
• Client identification: name, tax ID (or passport number for international clients), address.
• Issue date.
• Reference number, different from the official invoice numbering series.
• Detailed description of goods or services: units, prices, discounts and estimated taxes if applicable.
• Total amount.
• Payment terms: payment method, deadlines and bank details.

The document should include a clear statement indicating its non-tax nature. A common example is: "This document has no tax validity. The final invoice will be issued once payment has been received.".
If used in international trade, it may be useful to include additional information such as the incoterm, estimated value in foreign currency, port of shipment and logistics details.

Proforma invoice examples

Imagine a graphic design agency issuing a proforma invoice for a client who has requested several services:
Proforma Invoice No. 2024-001
Issuer: Creativa Studio S.L., CIF B12345678
Client: Juan Pérez, NIF 12345678Z
Date: 12/06/2025
Service details:

• Logo design: 1 unit × 300 €
• Business cards (100 units): 100 €
• Digital corporate dossier: 1 unit × 250 €

Subtotal: 650 €
Estimated VAT (21 %): 136,50 €
Total estimate: 786,50 €
Payment method: bank transfer to IBAN ES12 3456 7890 1234 5678 9012
Terms: 50 % upfront, 50 % upon project completion.

Note: This document has no tax validity. The final invoice will be issued once payment has been received.
This example shows how all relevant elements can be included without the document implying any accounting or tax commitment.

Differences between a standard invoice and a proforma invoice

Although they may appear similar at first glance, there are key differences between a standard invoice and a proforma invoice. The most important is their legal validity: a standard invoice creates tax obligations and must be recorded in the accounts, while a proforma invoice does not.
Secondly, a commercial invoice represents a completed or ongoing transaction, whereas a proforma invoice is a preliminary document used to inform, negotiate or request advance payments without tax implications. In addition, proforma invoice numbering should not be part of the official accounting series.
They also differ in their VAT treatment. A final invoice triggers the obligation to pay VAT, while in a proforma invoice, VAT is only shown as an estimate. In other words, issuing a proforma invoice does not generate VAT liability.
In short, while a commercial invoice is the document that formalizes the sale of goods or the provision of services, a proforma invoice works as a flexible communication tool between supplier and client. It is highly useful for preventing errors, agreeing on terms and improving the management process before closing the transaction.
For all these reasons, the proforma invoice has become a key tool for freelancers, professionals and companies seeking transparency, organization and security in the sales process, without immediately taking on tax obligations. When used correctly, it helps strengthen client relationships and avoid administrative or accounting issues.