Why Use a Proforma Invoice?
Quote Before Delivery
Give clients a clear breakdown of costs before committing. Build trust and set expectations upfront.
Convert to Tax Invoice
Once the client approves, convert to a full tax invoice with one click. No re-entering data.
Set Validity Periods
Add an expiry date to your proforma so clients know the quoted price is time-limited.
SARS-Compliant
Our proforma templates include all required fields for South African tax compliance.
What is a Proforma Invoice?
A proforma invoice is a preliminary bill of sale sent to buyers before goods are delivered or services are rendered. Unlike a tax invoice (which is a legal document requesting payment), a proforma invoice is an estimate or quotation that outlines the expected costs.
Proforma Invoice vs Tax Invoice
Understanding the difference is crucial for South African businesses:
- Proforma invoice — A non-binding estimate sent before delivery. Not a legal demand for payment. Used for customs, pre-approval, or budgeting purposes.
- Tax invoice — A legal document issued after delivery that demands payment. Required by SARS for VAT-registered businesses. Must include VAT registration number and meet specific formatting requirements.
When to Use a Proforma Invoice
- When a client requests a cost estimate before committing
- For international trade and customs declarations
- When applying for letters of credit or import permits
- To get client approval before starting work
- For deposit requests before project commencement
What to Include in a Proforma Invoice
- The words "Proforma Invoice" clearly displayed
- Your business name, address, and contact details
- Client's name and address
- Unique proforma number
- Date and validity period
- Detailed description of goods or services
- Quantities, unit prices, and total amounts
- Payment terms and conditions
- VAT information (if applicable)
Illumi makes it easy to create proforma invoices that include all of these details. Once your client approves, convert to a full tax invoice with a single click. Try it free today.