Proforma Invoice Template

Proforma invoice template

We have created a free Excel proforma invoice template to download. All our templates are free and easy to use. Before we get to the template, we will look at what a proforma invoice is and VAT implications.

A proforma invoice is different from a standard sales invoice issued to a customer for several reasons.

What is a Proforma Invoice

A proforma invoice is a document issued to a customer for goods or services before you supply them. There are a few reasons you may decide to issue proforma invoices.

  • The customer is new, and you require payment in advance
  • It is a large order, and you require part payment upfront
  • The customer is a bad payer, and therefore credit is no longer granted
  • To reserve goods to cover an order

A proforma invoice is a payment request, and once the customer makes the payment or the goods or services provided, you should issue a VAT invoice.

Proforma Invoice VAT

One thing to note about a proforma invoice is that it is not a VAT invoice. Mark the document clearly with with the wording “This is not a VAT invoice.”

Can you Claim VAT on a Proforma Invoice?

The tax point on an invoice is the date that a transaction takes place. The date might be when the goods are supplied or collected, or service is complete. The tax point can also be the date that payment is received. Below are a couple of examples:

  • A proforma invoice is issued on 15th January and payment is received on 20th February. The tax point is 20th February, and a tax invoice is issued.
  • A proforma invoice is issued on 15th January and goods are supplied on 1st February. The tax point is 1st February.

Once a transaction takes place, a VAT invoice should be issued and include the tax date. You should not delay the invoice until payment is received, as it might be a couple of months later.

You must issue VAT invoices within 30 days of the date the transaction took place.

It is also essential to reclaim VAT in the correct period and the date the transaction took place as a customer.

It a business uses the VAT cash accounting scheme, they can only claim the VAT when money is paid or received.

Free Excel Proforma Invoice Template

Our free Excel Proforma invoice template is available to download at the end of this article. It allows you to set up a template to include your business information and logo. The template will automatically calculate the VAT.

How to use the Proforma Invoice Template

Follow these instructions to get started with our free proforma invoice template:

  • Download the template at the bottom of this article
  • Open the template in Excel
  • Insert your company logo, if you have one, or delete the message
  • Enter your business name, address and at the bottom complete the payments section
  • Save the template; this will act as a template for future proforma invoices
  • If you are using autosave on Excel, save another copy with a different file name.
  • Enter the customer name, address and order reference, if there is one provided
  • Enter the date of the invoice. The invoice number should not be part of your standard invoice numbers, but you may want to give it a different sequence of numbers for reference if you issue lots of proformas. You can also leave it blank
  • You can now enter the details of the products or services required.
  • The template calculates the totals for you
  • Enter the payment due by date or leave blank

The proforma invoice is then ready to send to your customer.

Do not forget that once payment is received or goods or services delivered to issue a VAT invoice.

Proforma Invoice Template Example

Below is an example of our proforma invoice template:

Proforma Invoice Template Example

As you can see from the above example, it is for bookkeeping services before the work is carried out. The tax point will be either when the work is carried out or payment made.

We also have available a sales invoice template for when the tax point is reached.

If you are looking for other bookkeeping templates for your business, take a look at our complete section.

Return from proforma invoice template to Excel bookkeeping templates.