What Is a Proforma Invoice? Meaning, Example, Template

What does a proforma invoice mean?

A proforma invoice presents the proposed transaction in invoice form. It is also written as “pro forma invoice” and abbreviated to PI.

Use it to review the proposed order before paying. A supplier can issue it to request an agreed advance payment.

A PI alone does not establish that payment has been received, production has started or goods have shipped. Keep the agreed specification and separate evidence of payment and shipment.

Proforma invoice vs commercial invoice

The documents can look similar. A PI sets out a proposed transaction; a commercial invoice documents goods sold and supplies information for customs clearance.

For the relationship with your purchase order, see purchase orders, proformas and commercial invoices.

What should a Chinese supplier’s PI contain?

As practical buying checks, review the seller and buyer identities, PI reference and issue date, product description and specification reference, quantity, unit price, currency and total.

Also agree delivery terms and the named place, included and excluded charges, payment stages, estimated dispatch timing and quotation validity. For a bank transfer, verify the beneficiary and payment instructions separately.

Treat this as a buying checklist. Assess supplier capability and product compliance separately rather than relying on the appearance of the PI.

For field-by-field checks, use how to read a Chinese proforma invoice. To review the wider offer, use the China supplier quote checker.

Proforma invoice example and template

The outline below connects the quoted order to the requested payment. Bracketed text is a placeholder, not a price, payment recommendation or completed invoice.

Clearly identify the document as a proforma invoice. Use the templates page as a starting point, then agree the actual terms with your supplier.

How is a PI used for deposit payment?

Before transferring a deposit, agree the order total, amount due now, balance and payment triggers in writing. Specify the conditions for paying the balance, such as an agreed inspection or shipping-document check.

Verify the beneficiary against the contracting supplier. If another business will receive payment, establish and document why before transferring funds. Confirm changed bank details through an independently verified contact.

Record the agreed PI reference with the payment and request the supplier’s acknowledgement of receipt. Check the goods against your requirements separately.

Can a PI be used for customs clearance?

For purchased goods, obtain a commercial invoice reflecting the actual shipment and confirm the required transport and other documents with your carrier or customs agent. Do not assume a preliminary order or deposit PI contains sufficient information.

A PI is not universally excluded from customs use. For UK transaction-value evidence, HMRC allows the seller’s invoice or payment-request document if its authenticity is clear and it sufficiently demonstrates the total price paid or payable.

DHL describes proforma invoices for certain non-sale consignments, including free commercial samples, but also warns that customs may question them. Confirm what your carrier and destination customs require before dispatch.

For any destination, including the EU or US, check the requirements for the actual goods and shipment with the destination customs authority or appointed agent.

UK example: customs value and import VAT

Where HMRC’s transaction-value method applies, valuation is based on the price paid or payable for the goods, with the required additions and exclusions. A part-payment deposit alone is not the value of the whole order.

Include transport, insurance, loading and handling connected with delivery to the UK border unless already included. Check other valuation adjustments rather than assuming the PI total is sufficient.

For import VAT, add applicable import charges, excluding VAT itself, and relevant incidental expenses to customs value. Calculate the value for the imported goods rather than using the deposit alone.

HMRC does not accept a proforma invoice as evidence for reclaiming input VAT. Retain the appropriate import VAT evidence and cross-reference it to the supplier’s invoice.