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Proforma Invoices are usually used for customs purposes only, often where unsold goods are being shipped. Commercial Invoices are usually used where sold goods are being shipped.

A pro forma invoice is drawn up if the goods have no commercial value. The commercial invoice provides information about the consignor and consignee for the goods and above all contains a complete description of all contents and details of their value. An original and five copies have to accompany the parcel.

A final sales invoice (also called a commercial invoice, final invoice, or official invoice) is a business instrument that states the total amount due and requests payment. A proforma invoice is a declaration by the seller to provide products or services in the future and isn't a legally binding agreement.

Pro Forma Invoice Seller's name and address. Buyer's name and address. Buyer's reference. Items quoted. Prices of items: per unit and extended totals. Weights and dimensions of quoted products. Discounts, if applicable. Terms of sale or Incoterm used (include delivery point)

Basically, the main distinction is that one is used as an estimate, and the other as a request for final payment. A pro forma is used before goods are shipped and no payment is required. A commercial invoice is sent after the goods have been delivered and now, it is time to pay.

Commercial invoices reflect the actual sale and demand payment for the goods or services, whereas pro forma invoices serve as estimates or bids and give potential customers a general idea of projected prices.

The key point to remember is that a proforma is usually sent to a customer or client when they've committed to purchasing from you, but can't be sent an official invoice because the final details still need to be confirmed. Once the customer agrees to everything, then you deliver the goods and issue a formal invoice.

You should always use both shipping documents in any commercial transaction involving international trade. While a proforma invoice helps you secure financing and provides an estimate of what goods or services will cost, a commercial invoice is needed to provide proof of the sale and is necessary for customs clearance.

Can you pay on a proforma invoice? A proforma invoice is not a legal document. That means the customer is not legally obliged to pay the amount listed. Instead, you must issue a commercial invoice with an invoice number to request payment.

Whereas the proforma invoice is like a quotation, is not legally binding and is sent before the sale and details have been confirmed. A sales invoice can also serve as a tax invoice, since it includes VAT/GST and other taxes. The final sales invoice can be used to reclaim VAT/GST.