A pro forma invoice is a document you send in advance, setting out what you'll supply and what it will cost, so your customer can pay before the work starts or the goods ship. It isn't a VAT invoice and your customer can't reclaim VAT on it. You take payment against it like any other request, by card, pay by bank or bank transfer, and once the money arrives you issue the proper invoice, within 30 days if you're VAT registered.
In this article
The short version
- A pro forma sets out what you'll supply and the price, so the customer can pay before you start.
- It isn't a VAT invoice, and your customer can't reclaim VAT on it.
- Label it pro forma, list each item with VAT, and give it a reference outside your invoice sequence.
- Send a payment link so the customer can pay by card or pay by bank straight away.
- Once paid, issue the proper invoice, within 30 days if you're VAT registered.
What a pro forma invoice is, and what it isn't
A pro forma looks like an invoice. It has your details, your customer's details, a description of the goods or services, quantities, prices and a total. The difference is its job. A normal invoice records a sale that has happened and asks to be paid for it. A pro forma says what you will supply if your customer pays, and gives them something to pay against.
HMRC describes pro formas as documents that carry some or all of an invoice's details but aren't meant to record a sale. They generally don't go into either party's books. For VAT, that has two consequences:
- A pro forma isn't a VAT invoice, even if you're VAT registered and it shows VAT. HMRC suggests marking it "This is not a VAT invoice".
- Your customer can't use it to reclaim VAT. They need the full VAT invoice you issue once they've paid.
A pro forma also doesn't put your customer in debt to you the way an issued invoice for completed work does. Until they pay and you supply, it's closer to a priced offer. If they decide not to go ahead, there's usually nothing to chase and nothing in your accounts to reverse.
When businesses use one
HMRC's own guidance notes that suppliers often use pro formas with customers they don't know yet, or whose ability to pay they're unsure of. That covers most of the common cases:
- a new customer with no payment history, where you'd like the money before you commit time or stock
- bespoke or made-to-order work, where you can't resell what you've made if the customer walks away
- jobs with large upfront costs, such as materials, event bookings or third-party fees you pay on the customer's behalf
- deposits, where you ask for part of the price before you start
- overseas buyers, who sometimes ask for a pro forma before they'll release payment or arrange import paperwork; the later commercial invoice usually refers back to it
Some customers ask for one themselves, because their finance team needs line items and VAT before it can approve an advance payment.
What to put on a pro forma
Most of what goes on an ordinary invoice belongs on a pro forma too, so your customer knows exactly what they're paying for:
- the words "pro forma" at the top, and "This is not a VAT invoice" if you're VAT registered
- your business name, address and contact details, and your customer's
- a reference number, ideally from a separate series so it can't be confused with your invoice numbers
- each product or service on its own line, with quantity, unit price and the line total
- VAT shown separately on each line if you'll be charging it, so the customer can see what the final invoice will say
- the total to pay, and whether it's the full price or a deposit
- how long the price holds and when you'll start or ship once paid
- how to pay, with a payment link or your bank details and a reference
How to take payment and issue the final invoice
A payment link on the pro forma lets them pay by card, Apple Pay, Google Pay or pay by bank in a minute or two, and the money is identified the moment it arrives. Bank transfer works too, but give the pro forma reference as the payment reference, or the payment may arrive with a name you don't recognise and nothing to match it against.
Once the money is in, issue the real invoice. If you're VAT registered, HMRC expects a full VAT invoice within 30 days of receiving the payment, and the payment date is normally the tax point for the amount received. If you took a deposit, the VAT invoice covers the deposit, and you invoice the balance when you supply the rest. Mark the pro forma as paid or closed so it doesn't sit in your records looking unpaid.
In Adfin, a pro forma is a payment request: a request for payment that isn't an invoice in your accounting software. You add the products and services, including items synced from Xero or QuickBooks, and Adfin shows an estimated tax breakdown so the customer sees what they're paying for. They pay through the payment page by card, pay by bank or bank transfer. With automatic tax invoices switched on, Adfin creates the tax invoice as a PDF when the request is paid, sends it to your customer and syncs it to your accounting software, so the second step doesn't depend on someone remembering it. If a request goes unpaid, Adfin's collection agents can follow it up within rules you approve.
This article explains HMRC's published guidance and isn't tax advice. If you're unsure how a deposit or advance payment should appear in your VAT return, check with your accountant.
Related guides
- Do you need to issue a VAT invoice after a customer pays a pro forma?
- VAT invoices: what UK businesses must show
- Invoicing for UK businesses: a complete guide
- Payment links: what they are and why they get paid faster
- How to take a deposit and collect the balance by direct debit
Common questions
Is a pro forma invoice a legal invoice? No. It's a document setting out what will be supplied if the customer pays. It doesn't record a sale and isn't a VAT invoice.
Can my customer reclaim VAT on a pro forma invoice? No. HMRC doesn't accept a pro forma as evidence for reclaiming VAT. Your customer needs the full VAT invoice you issue after payment.
Do I have to pay VAT when a pro forma is paid? If you're VAT registered and the customer pays before you supply, the payment date is normally the tax point for the amount received, so the VAT goes into that period.
Should a pro forma have an invoice number? Give it a reference, ideally from its own series. Keeping it out of your invoice sequence avoids gaps when a pro forma is never paid.
Do I need to cancel an unpaid pro forma with a credit note? Usually not. A pro forma isn't recorded in your accounts, so you can mark it as withdrawn or expired without a credit note.
How long do I have to send the final invoice after payment? If you're VAT registered, issue the full VAT invoice within 30 days of receiving the payment.
Sources
- HMRC - VAT Trader Records Manual: pro-forma invoices, introduction (VATREC9010) (accurate as of November 2026) https://www.gov.uk/hmrc-internal-manuals/vat-trader-records/vatrec9010
- HMRC - VAT Trader Records Manual: can a pro-forma invoice be used to account for VAT (VATREC9020) (accurate as of November 2026) https://www.gov.uk/hmrc-internal-manuals/vat-trader-records/vatrec9020
- HMRC - VAT guide (VAT Notice 700) (accurate as of November 2026) https://www.gov.uk/guidance/vat-guide-notice-700
- GOV.UK - Invoicing and taking payment from customers: what invoices must include (accurate as of November 2026) https://www.gov.uk/invoicing-and-taking-payment-from-customers/invoices-what-they-must-include
- Adfin - Changelog: product updates (accurate as of November 2026) https://www.adfin.com/resources/changelog
