Complete guide — updated 2026

Invoice Proforma Free Generator
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Everything about invoice proforma: definition, legal status, required elements, customs use, and how it differs from quotes and commercial invoices. Create your invoice proforma for free.

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FE

My Company

123 Business Ave, New York

INVOICE

FAC-2026-001

DescriptionQtyPriceTotal
Website development115,00015,000.00
Annual hosting12,4002,400.00
Monthly maintenance38002,400.00

Total

19,800.00 USD

Complete guide

Everything You Need to Know About Proforma Invoices

What is an invoice proforma?

An invoice proforma — also written as proforma invoice or pro forma invoice — is a preliminary document issued by a seller to a buyer before a transaction is finalised. The term combines "invoice" (a request or summary of charges) with "proforma" (Latin for "for the sake of form"), indicating that the document follows the format of a final invoice but is not a legally binding demand for payment. Businesses use an invoice proforma to confirm pricing, quantities, shipping terms, and payment conditions before the buyer commits to an order. It is widely used in international trade to support customs declarations, letters of credit applications, import licence requests, and internal procurement approvals. Unlike a commercial invoice, an invoice proforma has no accounting or tax value — it serves as a formal estimate and a moral commitment from the seller. On invoiceproforma.com, you can create a professional invoice proforma in minutes with all required fields, multi-currency support, Incoterms, and free PDF export.

Definition: What is a proforma invoice?

A proforma invoice is a preliminary document sent by a seller to a buyer before goods are delivered or services are rendered. The term "pro forma" comes from Latin, meaning "for the sake of form." Unlike a commercial invoice, a proforma invoice is not a demand for payment — it serves as a detailed estimate, a commitment from the seller regarding prices, quantities, and terms of sale. Proforma invoices are widely used in international trade, import-export operations, and business-to-business transactions where buyers need a formal document before placing an order. Think of it as a preview of the final commercial invoice that will follow once the transaction is confirmed. Our free online tool lets you create professional proforma invoices in minutes, with all the required fields filled in automatically.

Legal status of proforma invoices

A proforma invoice has no legal accounting or tax value in most jurisdictions. It cannot be used as a tax receipt, it does not create a legal obligation to pay, and it should never be recorded in your accounting books as revenue. However, a proforma invoice does carry moral and commercial weight: the seller is expected to honour the prices and conditions stated in the document during its validity period (typically 30 to 90 days). In some countries, courts have treated proforma invoices as evidence of a commercial agreement, especially when signed by both parties. For customs purposes, a proforma invoice is accepted as a supporting document for import declarations, though customs authorities may request a commercial invoice for final clearance. It is important to clearly mark the document as "Proforma Invoice" to avoid confusion with a binding commercial invoice.

Required elements on a proforma invoice

A complete proforma invoice should include the following elements: the words "Proforma Invoice" clearly displayed at the top, the seller's full name, address, and tax identification number (EIN, VAT number, etc.), the buyer's full name and address, a unique reference number for tracking, the date of issue and the validity period, a detailed description of goods or services including quantities and unit prices, the total amount before and after tax, the currency used for the transaction (USD, EUR, GBP, etc.), payment terms and conditions, shipping terms using standard Incoterms (FOB, CIF, EXW, DDP), and for international shipments: HS codes, country of origin, gross and net weight, and number of packages. Missing any of these elements can cause delays at customs or issues with banks processing letters of credit.

When to use a proforma invoice

Proforma invoices are essential in several business scenarios. In international trade, buyers often need a proforma invoice to apply for import licences, open letters of credit with their bank, or clear goods through customs. Exporters use proforma invoices to provide formal price quotations to foreign buyers before shipping. In domestic B2B transactions, proforma invoices help buyers obtain internal purchase approval or budget allocation before committing to a purchase. Service providers use proforma invoices to outline project scope and costs before starting work. Proforma invoices are also required for sample shipments, goods sent for exhibition, and donations crossing borders. If you sell internationally or work with government agencies and large corporations, proforma invoices are an indispensable part of your documentation workflow.

Proforma invoices for customs clearance

Customs authorities around the world accept proforma invoices as supporting documents for import and export declarations. When goods cross international borders, a proforma invoice helps customs officers determine the declared value, classify products using HS codes, verify the country of origin, and assess applicable duties and taxes. For shipments that are not yet sold (samples, exhibitions, repairs, gifts), a proforma invoice is the primary valuation document. Many countries — including those in the EU, the United States, Canada, the UAE, and most Asian markets — require a proforma invoice when a commercial invoice is not available. To ensure smooth customs clearance, include accurate HS codes, Incoterms, weight, dimensions, and a clear description of each item. Learn more on our dedicated customs guide.

Proforma invoice vs quotation (quote)

While both documents provide pricing information to a potential buyer, a proforma invoice and a quotation serve different purposes. A quotation (or quote) is an offer to sell goods or services at stated prices and terms — it is part of the negotiation process and can be revised. A proforma invoice is more formal and typically issued after the buyer has agreed to the terms; it mirrors the format of a final invoice and is used for administrative purposes such as customs declarations, bank transactions, and internal approvals. In practice, a quotation starts the conversation, and a proforma invoice formalises the agreement. Some businesses use them interchangeably, but this can create confusion — especially in international trade where customs authorities expect a proforma invoice, not a quote. Our platform lets you create both documents and convert a quotation into a proforma invoice or commercial invoice seamlessly.

Proforma invoice vs commercial invoice

The key difference between a proforma invoice and a commercial invoice is legal binding force. A commercial invoice is a legally binding document that demands payment, must be recorded in accounting books, and serves as the basis for tax declarations (VAT, GST, sales tax). A proforma invoice is preliminary, non-binding, and has no accounting or fiscal value. Both documents contain similar information — seller, buyer, items, quantities, prices, and totals — but a commercial invoice includes additional elements like payment due dates, late payment penalties, and invoice numbers that follow a sequential legal numbering scheme. In international trade, customs authorities use the commercial invoice for final duty assessment, while the proforma invoice is used for preliminary declarations. You can read our detailed comparison guide to understand all the differences and when to use each document.

How to create a proforma invoice online for free

Creating a professional proforma invoice does not require expensive software or accounting expertise. With our free online tool, you can generate a proforma invoice in under five minutes. Start by entering your company details — name, address, tax identification number, and contact information. These are saved to your profile so you only need to enter them once. Next, add your client's information or select from your saved contacts. Then list each product or service with a description, quantity, unit price, and applicable tax rate. Choose the transaction currency, select the appropriate Incoterm for international shipments, and set the validity period. The tool automatically calculates subtotals, taxes, and the grand total. Finally, export your proforma invoice as a polished PDF or send it directly by email from the platform. You can also convert it into a commercial invoice with one click once the deal is confirmed.

Proforma invoices across different industries

Proforma invoices are used across virtually every industry involved in trade, both domestic and international. In manufacturing and export, they are essential for customs documentation, letters of credit, and import licence applications. In technology and consulting, proforma invoices outline project scope, milestones, and payment schedules before work begins. In wholesale and distribution, they confirm bulk pricing, minimum order quantities, and delivery timelines. In construction and engineering, proforma invoices detail equipment, materials, and labour costs for large projects requiring advance budgeting. In e-commerce, they accompany cross-border shipments to help customs classify and value the goods. Regardless of your industry, the fundamental structure remains the same — clear identification of parties, detailed line items, transparent pricing, and defined terms. Our platform provides templates optimised for each of these industries with the relevant fields pre-configured.

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Create Professional Proforma Invoices in Minutes

Our free online tool includes everything you need for international trade documentation — multi-currency, Incoterms, HS codes, and instant PDF export.

Professional PDF export

Generate polished proforma invoices as PDF files ready to send to clients, customs authorities, or banks. Every document includes all required fields automatically.

Multi-currency support

Create proforma invoices in USD, EUR, GBP, AED, or any currency your international trade requires. Amounts and totals update automatically.

Convert to commercial invoice

Once the deal is confirmed, convert your proforma invoice into a binding commercial invoice with a single click. No need to re-enter any data.

Send by email instantly

Email your proforma invoice directly from the platform. Your client receives a professional document with your company branding and all the details they need.

Incoterms and shipping terms

Include Incoterms (FOB, CIF, EXW, DDP, etc.), shipping method, and delivery timeline on every proforma invoice. Essential for international trade.

HS codes and customs fields

Add Harmonized System codes, country of origin, and declared values. Your proforma invoice will pass customs review without delays.

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Information

Products / Services

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Proforma Invoice
My Company LLC
123 Business Ave, New York, NY 10001
EIN: 12-3456789
No. PRO-2026-001
Date: 03/25/2026
Valid for: 30 days
Bill to
International Client Ltd.
456 Commerce Road, London, UK
Description
Qty
Unit Price
Total
Product A — Export
100
$25.00
$2500.00
Product B — Export
50
$40.00
$2000.00
Subtotal$4500.00
Tax (20%)$900.00
Total$5400.00
Terms: Net 30 | Incoterm: FOBCurrency: USD
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Our Proforma Invoice Tool vs Other Solutions

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FonctionnalitéInvoice ProformaOther tools
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Multi-currency support (50+ currencies)
Incoterms 2020 built-in selection
HS code fields for customs compliance
Convert proforma to commercial invoice
Sequential numbering system
Email sending from the platform
Quotations and quotes
Payment receipts
Delivery notes and purchase orders
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FAQ

Frequently Asked Questions

Everything you need to know about proforma invoices, their legal status, and how to use them.

A proforma invoice is a preliminary bill sent before goods are delivered or services are completed. It outlines what the buyer will receive, how much it will cost, and the terms of the sale. It is not a request for payment — it is an estimate and a commitment from the seller on the quoted prices and conditions.
No, a proforma invoice is not legally binding in the way a commercial invoice is. It does not create an obligation to pay and cannot be used as an accounting or tax document. However, it represents a moral commitment from the seller to honour the stated prices during the validity period. In some jurisdictions, it can be used as evidence of a commercial agreement.
Yes, customs authorities worldwide accept proforma invoices as supporting documents for import and export declarations. They are especially useful for shipments that are not yet sold, such as samples, exhibition goods, and repairs. Include HS codes, country of origin, declared value, and Incoterms for smooth clearance.
A quotation is part of the negotiation process and can be revised freely. A proforma invoice is more formal and is typically issued after terms are agreed upon. It mirrors the format of a final invoice and is used for customs, banking, and internal approval purposes. In international trade, customs authorities expect a proforma invoice rather than a quote.
The validity period depends on what the seller specifies on the document. Most proforma invoices are valid for 30 days, though some businesses set 15, 60, or 90-day validity periods. After expiration, the seller is no longer bound by the quoted prices and terms. Always include a clear validity date on your proforma invoice.
Yes. Once the buyer confirms the order and goods are shipped (or services delivered), the proforma invoice should be replaced by a commercial invoice. The commercial invoice typically carries the same details but becomes a legally binding payment request. Our platform lets you convert a proforma into a commercial invoice with one click.
In most cases, yes. International shipments require documentation for customs clearance. If you do not have a commercial invoice yet (because goods are not yet sold, or it is a sample shipment), a proforma invoice serves as the primary document for customs to assess duties and classify goods.
Sign up for free on our platform, enter your company details and your client's information, add your products or services with prices and quantities, and generate a professional proforma invoice as a PDF. The tool automatically calculates totals, includes Incoterms, and formats the document for international use.