Proforma Invoice vs Quotation: Which to Send

A buyer emails: "Please send a proforma." Another writes: "Can you quote for 500 units?" They sound similar, but the difference between a proforma invoice vs quotation is about timing and commitment. A quotation is an offer made while the buyer is still deciding; a proforma invoice is a preview of the final invoice for a sale the buyer has already agreed to, usually sent so they can pay upfront or arrange import and approval paperwork.

This guide compares the two side by side, shows a filled-in sample of each for the same order, and explains which one to send at each stage of a deal so you do not lock yourself into a price too early or slow down a buyer who is ready to pay.

Proforma invoice vs quotation: the short comparison

Point	Quotation	Proforma invoice
Purpose	Offer a price so the buyer can decide	Confirm the final details of an agreed sale before delivery
Stage of deal	Before acceptance	After acceptance, before shipping or invoicing
Negotiable?	Yes, often revised several times	Rarely; it reflects what was agreed
Typical trigger	Request for quotation (RFQ), enquiry	Purchase order, verbal yes, need for advance payment
Payment details	Optional	Usually included so the buyer can pay
Used for import or letters of credit	No	Yes, commonly
Recorded in your accounts	No	No (the final invoice is)
Tax document	No	No
Numbering	Quote series, e.g. Q-2026-088	Proforma series, e.g. PF-2026-031

Neither document is a demand for payment in the accounting sense and neither goes into your sales ledger. The final commercial or tax invoice is the only one that records revenue. That is why the two are often confused: both are "pre-invoice" documents. For the wider comparison between a quote and a real invoice, see how a quotation differs from an invoice.

What a quotation is for

A quotation (or quote) answers the question "how much would this cost?" It lets the buyer compare suppliers, check budget and ask for changes. Because the buyer has not committed, a good quotation protects you with conditions: a validity date, assumptions about scope, and what happens if quantities change.

Fields a quotation needs

• The word "Quotation" and a quote number from its own series (our guide to numbering quotes covers formats)
• Quote date and a clear "valid until" date
• Your business details and the prospective customer's name
• Itemised description, quantity, unit price and line totals
• Tax shown separately if you will charge it
• Delivery time, payment terms you expect, and exclusions
• How to accept (sign, reply by email, or issue a purchase order)

The validity date matters more than most people think. Material prices, exchange rates and your capacity all change, so a quote without an expiry can be held against you months later. Our guide on how long a quotation should stay valid suggests periods by industry. For a ready layout, see this quotation format with a sample.

What a proforma invoice is for

A proforma invoice says "this is exactly what you will be invoiced when we deliver." It looks almost identical to a final invoice, with the word "Proforma" in the heading, and it is sent once the buyer has agreed. Common reasons to issue one:

• Advance payment. You want the full amount or a deposit before production or shipping.
• Buyer approval. The buyer's finance team needs a formal document to raise a payment request.
• Import formalities. Importers use proformas to apply for import licences, foreign exchange or a letter of credit. Customs authorities sometimes accept one when no commercial invoice exists yet, with conditions; see when customs accepts a proforma invoice.
• Value declaration for samples or goods sent free of charge.

Because a proforma is not a tax invoice, the buyer cannot use it to reclaim VAT or GST. In the UK, HMRC's VAT guide expects pro-forma invoices to be clearly marked as not being VAT invoices. Adding "This is not a tax invoice" to the footer avoids confusion everywhere. Our full proforma invoice guide compares it with the commercial invoice that follows.

Sample: the same order as a quotation and as a proforma

Suppose a furniture maker is asked for 40 oak chairs and 10 tables, delivered, with 20% VAT.

Quotation Q-2026-088 (sent 3 March, valid until 2 April)

Item	Qty	Unit price	Total
Oak dining chair, natural oil finish	40	£95.00	£3,800.00
Oak table 180 x 90 cm	10	£420.00	£4,200.00
Delivery to one UK mainland address	1	£180.00	£180.00
Subtotal			£8,180.00
VAT 20%			£1,636.00
Total			£9,816.00

Notes on the quote: "Lead time 6 weeks from order. Prices valid 30 days. Volume discount of 5% on chairs for orders of 50 or more."

The buyer negotiates: 50 chairs to get the discount, delivery split across two sites. The maker then issues a proforma.

Proforma invoice PF-2026-031 (issued 10 March)

Item	Qty	Unit price	Total
Oak dining chair, natural oil finish (5% volume discount applied)	50	£90.25	£4,512.50
Oak table 180 x 90 cm	10	£420.00	£4,200.00
Delivery to two UK mainland addresses	2	£180.00	£360.00
Subtotal			£9,072.50
VAT 20%			£1,814.50
Total			£10,887.00
Deposit due now (50%)			£5,443.50

The math: £95.00 x 0.95 = £90.25; 50 x £90.25 = £4,512.50; subtotal £9,072.50 x 20% = £1,814.50 VAT. The proforma adds bank details, the buyer's PO number, the reference "Quote Q-2026-088" and the footer "Proforma invoice. This is not a VAT invoice. A VAT invoice will be issued on delivery."

When the furniture is delivered, the maker raises a final invoice for £10,887.00, shows the £5,443.50 deposit received and a balance of £5,443.50. If you bill deposits often, our deposit invoice guide shows how to show advance payments without double-counting VAT.

Which to send: a stage-by-stage guide

1. Enquiry or RFQ arrives. Send a quotation. The scope is not fixed and the buyer may be comparing three suppliers.
2. Buyer asks questions or negotiates. Revise the quotation, giving it a revision suffix (Q-2026-088-R1) so both sides know which version is current.
3. Buyer accepts. If payment comes after delivery on normal terms, you may not need a proforma at all: confirm the order and invoice on delivery. If the buyer must pay first, needs internal approval, or is importing, send a proforma.
4. Payment or approval received. Deliver, then issue the final invoice referencing the proforma and any payment received.

When buyers ask for a proforma too early

Some buyers ask for a "proforma" when they really want a quote, because their procurement system calls every pre-sale document by that name. Before sending one, check: are the quantities, prices and delivery terms final? If not, send a quotation and say a proforma will follow on confirmation. Sending a proforma for an unsettled deal leads to multiple proformas for one order, which confuses the buyer's accounts team.

Industry and country variations

• Export trade. Proformas are standard. They often include Incoterms, HS codes, country of origin, gross and net weight and packing details because the importer's bank or customs broker relies on them.
• Construction and trades. Quotations or estimates dominate; a proforma is rare except to collect a materials deposit.
• Software and services. Many enterprise buyers need a proforma to create a supplier record and raise payment for annual licences paid in advance.
• India and Pakistan. "Proforma invoice" is widely used by local suppliers for advance payments; the GST or sales tax invoice is still required when the supply happens.

Converting a quotation into a proforma invoice

Because the two documents share most fields, the cleanest workflow is to build the proforma from the accepted quotation rather than starting again. Copy the line items, then update only what changed during negotiation: quantities, agreed discounts, delivery addresses and the payment schedule. Change the title from "Quotation" to "Proforma Invoice," give it the next number in your PF series, and add a line such as "Ref: Quotation Q-2026-088 R1 accepted 9 March 2026." Add the buyer's PO number if one has been issued, your bank details, and the deposit or full amount you need before work starts. Finally, keep the validity date: a proforma that sits unpaid for three months should not oblige you to deliver at old prices.

When the final invoice is raised, the chain is easy to follow: quotation, proforma, payment, final invoice, each quoting the one before it. That chain is exactly what an importer's bank or a buyer's auditor will ask to see.

Common mistakes

• Using the main invoice number on a proforma. This creates a gap or duplicate in your tax invoice series. Keep a separate PF series.
• Booking the proforma as a sale. Revenue is recorded on the final invoice, not on the proforma.
• No validity date on either document. Both a quote and a proforma should state how long the price holds.
• Different figures on the proforma and final invoice without explanation. If something changes, issue a revised proforma or explain the difference on the final invoice.
• Forgetting the "not a tax invoice" note, which leads buyers to try to reclaim tax on the wrong document.

Whether you need a quotation, a proforma or the final invoice that follows, you can build each one in our free invoice generator by changing the document title and number series. There is no sign-up, and every version downloads as a clean PDF ready to email to your buyer.