What is Proforma Invoice?
A proforma invoice is a draft bill you send to a client before the actual supply happens. It tells the client what they will be charged, in what currency and on what terms. Clients often use it to get internal approval, raise a purchase order or send an advance. Because no supply has taken place yet, it does not create a GST liability and does not replace the final tax invoice.
Think of it as a firm quotation that looks like an invoice. It usually carries the word "Proforma" clearly at the top, so nobody mistakes it for the real bill.
Why it matters for exporters
Foreign clients, especially larger companies, often ask for a proforma invoice before releasing an advance. That is fine, but remember what the EDF tracks. Part 2B of the EDF has one row per invoice, with the invoice number and invoice date, and the invoice date drives both the EDF deadline and the 9-month realisation period. That row should be your actual export invoice, not the proforma. If you use proforma numbers on the EDF and different numbers on your tax invoices, matching in EDPMS gets messy.
If you receive an advance against a proforma, check with your AD bank how it wants the advance and the later invoice linked.
Example
Asha Design Studio quotes a London client GBP 3,500 for a brand refresh. The client's finance team wants a proforma before paying 50 percent upfront. Asha sends proforma PI-019 dated 2 November 2026 using the proforma invoice tool. The advance of GBP 1,750 arrives on 10 November. When the work is delivered on 5 December, Asha raises tax invoice ASD/26-27/033, and that invoice goes on the December EDF.
Common confusion
A quotation is an offer that may still be negotiated. A proforma is usually sent once terms are agreed. Neither is a tax invoice. Read more in our post on proforma invoice vs tax invoice.