Quick answer: A proforma invoice is issued before a sale and is only an estimate. A tax invoice is issued when goods or services are supplied, creates GST liability, is recorded in the books, and supports input tax credit.
Comparison table
Which one should you send?
Send a quotation to offer a price, a proforma invoice once the order is confirmed and you need prepayment or import paperwork, and a tax invoice when you supply the goods or services. The generator makes all three.
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Frequently asked questions
What is the difference between proforma invoice and tax invoice?
Proforma is an estimate before sale. A tax invoice is the legal bill on supply.
Can I claim GST input credit on a proforma invoice?
No. Input tax credit needs a valid tax invoice.
Is a proforma invoice an accounting entry?
No. It is not booked as a sale or receivable.
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