Fiducia TogetherPro forma invoice
A request for payment in advance. Not a VAT invoice.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
A pro forma sets out what will be supplied and what it will cost, requesting payment before supply.
Why it matters
It is used to secure payment up front from new or high-risk customers, and it is a substantial improvement on invoicing in arrears for cash flow.
What it looks like in practice
A pro forma is not a VAT invoice and does not create a tax point. Issue a proper VAT invoice once payment is received or goods are supplied.\n\nMark it clearly "pro forma" and "this is not a VAT invoice".
What to watch out for
Customers reclaiming VAT from a pro forma, which they cannot. And treating pro formas as sales in the accounts before the supply happens.
Where to get proper advice
Your accountant.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.