What Is Proforma Invoice?
A preliminary bill showing estimated costs before goods ship or work completes.
Detailed Explanation
It is not usually a tax invoice and may not create a legal debt. Buyers use it for quotes, customs, or internal approval.
Example
A supplier sends a proforma so the buyer can arrange payment before export.
Why It Matters
Sets expectations and speeds approvals without premature tax treatment.
Related Resources
Related Invoice Types Terms
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