Free Proforma Invoice Template (UK)

A proforma invoice is a document you send before a sale is completed, setting out the goods or services on offer and their price. It is a good-faith quote or a request to confirm an order, not a demand for payment. HMRC is clear that a proforma invoice is not a VAT invoice: it creates no tax point, and the buyer must not reclaim VAT on it, which is why it should be clearly marked. Once the sale proceeds you replace it with a full invoice. Copy the free template below; no email required.

Last updated: 30 July 2026. Checked against HMRC VAT Notice 700 (a proforma invoice is not a VAT invoice) on 30 July 2026.

A proforma invoice is a pre-sale document setting out the goods or services on offer and their price. It is not a VAT invoice (HMRC VAT Notice 700), so it creates no tax point, places no obligation to pay, and a buyer must not reclaim input VAT on it. It should be clearly marked as a proforma. When the sale proceeds, or payment is taken, the seller replaces it with a full VAT invoice. More detail + scope

Summary

This page provides a free copyable UK proforma invoice template plus an explanation of how a proforma differs from a full invoice: it is issued before supply to confirm price and terms, it does not create a VAT tax point, it is not a demand for payment, and a buyer cannot reclaim VAT on it. It covers the common uses (order confirmation, advance payment, purchase-order approval, customs valuation for cross-border trade) and notes that a proforma is not a fundable asset for invoice finance, only a raised deliverable invoice can be advanced against.

This page covers

UK proforma invoice template and definition: what a proforma is, why it creates no VAT point, how it differs from a full invoice, when to use one, and whether it can be paid or funded

Not covered here

Full invoices (see /tools/invoice-template/), credit notes (see /tools/credit-note-template/), invoice finance (see /guides/how-invoice-finance-works/)

The template

Copy it into a document or email. Square brackets mark the fields to replace. Keep the "not a VAT invoice" marking: it is what stops the buyer treating it as a real invoice and reclaiming VAT. 

PROFORMA INVOICE

This is not a VAT invoice. Do not pay VAT or reclaim
input tax on this document.

Proforma number: PRO-0001
Date: [date]
Valid until: [date]

From:
[Your name / trading name]
[Address]
[Email]  [Phone]
[VAT registration number: GB 123 4567 89, if registered]

To:
[Customer / company name]
[Customer address]

--------------------------------------------------------------
Description                     Qty    Unit price    Amount
--------------------------------------------------------------
[Goods or services to be supplied]  [1]  £[0.00]     £[0.00]
--------------------------------------------------------------
                                       Subtotal:     £[0.00]
                                       VAT [20]% (if applicable): £[0.00]
                                       ESTIMATED TOTAL:  £[0.00]

Payment / next step: [e.g. pay to confirm the order; a VAT
invoice will follow on supply / on payment]

Notes: This proforma sets out the goods or services and the
price on offer. It is not a demand for payment and does not
create a VAT point. A full invoice will be issued when the
supply is made or payment is received.
Download as .txt

Proforma vs full invoice

The two documents look almost identical, which is exactly why they get confused. The difference is timing and legal effect:

When to use a proforma

A proforma is not a fundable invoice

If you use invoice finance, a proforma cannot be funded: providers advance against real, raised invoices for goods or services already delivered, not against a pre-sale quote. Turn the proforma into a full invoice once you have supplied, and that invoice becomes the asset a factoring or invoice discounting facility will release 70-90% of within a day or two. See the UK invoice template for the document that does fund.

AP

Adam Parker

Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd

Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.

Last reviewed: 30 July 2026

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Proforma Invoice FAQ

What is a proforma invoice?

A proforma invoice is a document a seller sends before a sale is completed, setting out the goods or services on offer and their price. It looks like an invoice but it is a good-faith quote or a request to confirm an order, not a demand for payment. HMRC is explicit that a proforma invoice is not a VAT invoice, and it should be clearly marked so the buyer does not treat it as one.

Does a proforma invoice create a VAT point?

No. Because a proforma is not a VAT invoice, issuing one does not create a tax point and does not require you to account for VAT. The tax point arises later, when you issue the actual VAT invoice or receive payment, whichever happens first. This is why HMRC requires a proforma to be marked so it cannot be mistaken for a VAT invoice: a buyer must not reclaim input VAT on a proforma.

What is the difference between a proforma invoice and an invoice?

Timing and legal effect. A proforma is issued before the sale to confirm price and terms; it places no obligation to pay and creates no VAT point. A full invoice is issued once goods or services are supplied (or payment is taken); it is a demand for payment, it does create a VAT point if you are registered, and it must carry every field VAT Notice 700 requires. Once the sale proceeds, you replace the proforma with a proper invoice.

When should I use a proforma invoice?

Common uses are: confirming an order and price before you start work, requesting payment in advance from a new customer, supporting a customer's internal purchase-order or budget approval, and cross-border trade, where a proforma is often used for customs valuation and to arrange payment before shipping. In each case it commits the price without committing either side to the VAT and payment consequences of a real invoice.

Can I get paid from a proforma invoice?

A customer can choose to pay against a proforma (advance payment is one of its main uses), but a proforma is not itself a demand for payment and carries no legal obligation to pay. If you take payment against a proforma you then have a tax point, so you must issue a full VAT invoice for that payment. For funding purposes a proforma is not an asset a lender will advance against; only a raised, deliverable invoice can be funded.