Not a tax invoice
A proforma invoice looks like an invoice but is not a demand for payment. Your client cannot use it to claim input VAT. Only a final tax invoice issued under Section 20 of the VAT Act allows that.
What is a proforma invoice?
A proforma invoice is a preliminary document that shows the buyer what the final invoice will look like. It includes the same details (items, quantities, prices, VAT) but it is clearly marked as a proforma, meaning it is not yet a request for payment.
The word “proforma” comes from Latin, meaning “for the sake of form”. It is a document that follows the form of an invoice without being one.
Proforma invoice vs quote vs tax invoice
Quote / Quotation
A price offer for specific goods or services. When accepted, it forms a binding contract. Most common in South African business. Does not need to look like an invoice.
Proforma Invoice
Formatted exactly like an invoice but marked “Proforma”. Used when the buyer needs a document for customs, banking (e.g., foreign exchange), internal approvals, or budgeting. Not a demand for payment. Cannot be used to claim input VAT.
Tax Invoice
A formal demand for payment required by Section 20 of the VAT Act 89 of 1991. Must include specific fields (VAT number, amounts excl. and incl. VAT). The buyer uses this to claim input VAT from SARS. Issued after the supply is made.
When to use a proforma invoice
- International trade: customs authorities require a proforma to assess duties before goods are shipped
- Foreign exchange: South African banks may require a proforma invoice before approving an international payment
- Government and corporate procurement: many departments need a proforma for budget approval before issuing a purchase order
- Pre-payment: when you want to show the client exactly what they'll pay before starting work
- Import/export: to declare the value of goods for customs purposes
What to include on a proforma invoice
- The words 'Proforma Invoice' clearly displayed
- Your business name, address, and contact details
- The buyer's name and address
- A proforma number (use a different sequence from your invoice numbers)
- Date and validity period
- Detailed description of goods or services
- Quantities, unit prices, and line totals
- VAT breakdown (if VAT registered)
- Total amount
- Payment terms and banking details
- Shipping/delivery terms (for goods)
Example proforma invoice
PRO FORMA INVOICE #PF-2026-014
Khumalo Office Furniture (Pty) Ltd
8 Industria Road, Durban, 4001
VAT: 4123456789
To: Dlamini Attorneys
Date: 2 March 2026
Valid until: 1 April 2026
6 x Office desk @ R3,200.00: R19,200.00
6 x Office chair @ R1,450.00: R8,700.00
1 x Delivery and assembly: R1,500.00
Subtotal: R29,400.00
VAT (15%): R4,410.00
TOTAL: R33,810.00
Notes: 50% deposit to confirm the order. This is not a tax invoice.
How to create a proforma invoice with the generator
The generator at the top of this page prints “PRO FORMA INVOICE” in the header, which is what formal procurement, banks, and customs agents usually ask for. To make one:
- Enter your business details, and your VAT number if you are registered
- Enter the buyer's name and address
- Type a proforma number from its own sequence (for example PF-2026-014), the date, and use the due date for when the offer or deposit falls due
- Add each item with quantity and unit price, and switch on VAT if it applies
- Use the banking details field for where a deposit should be paid, and the notes field for validity, delivery terms, and a line such as 'This is not a tax invoice'
- Check the preview, click Download PDF, and choose 'Save as PDF'
- Send the PDF to the buyer on WhatsApp as a document, or by email
Nothing is saved in the generator, so keep the PDF. When the order is confirmed and delivered, issue the final invoice with a new invoice number and refer back to the proforma number in the notes. That way your records show the offer, the acceptance, and the final bill as three linked documents.
FAQ
What is a proforma invoice?
A proforma invoice is a preliminary bill or estimate sent before work is completed or goods are delivered. It shows your client what the final invoice will look like, including descriptions, quantities, amounts, and VAT, but it is not a demand for payment.
Is a proforma invoice the same as a quote?
They serve a similar purpose but have different uses. A quote is a price offer for a specific job. A proforma invoice is formatted like a final invoice and is often required for customs, banking, or internal approvals. In everyday South African business, they are often used interchangeably.
Can I convert a proforma to a final invoice?
A proforma is not converted, it is followed by a new document. Once the client approves and the goods are delivered or the work is done, create a final invoice (a tax invoice if you are VAT registered) with its own invoice number. Mention the proforma number in the notes so there is a clear paper trail from proforma to final invoice.
Is a proforma invoice legally binding?
Not by itself. A proforma invoice is an offer, not a contract. However, if the client accepts it and you both act on it (e.g., deposit is paid, work begins), it can form part of a binding agreement under South African contract law.
Does a proforma invoice need a VAT number?
If you are VAT registered, yes. Include your VAT number and a VAT breakdown. However, a proforma invoice is not a tax invoice under Section 20 of the VAT Act 89 of 1991. The client cannot use it to claim input VAT. Only a final tax invoice allows that.
Free to use. No signup. Nothing leaves your browser.