![]() ![]() When issuing or receiving a proforma invoice, it is important that the declared amount also corresponds to the actual value of the goods, if this is applicable for customs clearance. Reason for export (sample shipment? replacement?).Declaration of origin, if the country of origin of the goods is in the EU.Gross and net weight, country of origin, package number.Sales tax identification number, EORI number.It should include the following information: Purely for reasons of logic, pro-forma invoices should in principle contain the same information that can be found on commercial invoices. What information should a pro forma invoice contain?Īs already mentioned, a proforma invoice must be marked as such, but there is no legal requirement for this. Note: The proforma invoice is marked as such and may not be used as a final invoice and a new invoice, even if not much will change, must be issued in any case. Thus, this document must be marked as a proforma invoice in any case, ideally in English and in the respective language of the country of destination. In contrast to the commercial invoice, there are no legal requirements regarding the structure and content of the proforma invoice, even though certain details must be included. Pro-forma invoice for goods without commercial value.Commercial invoice for goods with commercial value.the commercial value is missing and only the consignment of goods is to be declared, then a proforma invoice must be issued. The commercial invoice is issued whenever the goods shipped have a certain commercial value and this value is clearly specified. The classical commercial invoice is essentially nothing more than an invoice for foreign trade, which indicates the value of the goods and forms the basis for import customs clearance. ![]() Deliveries and services on advance payment, which serve as the basis for payment.Advance invoice or advance copy of an original invoice as a replacement for an offer or an order confirmation.Advance invoices for import/export financing for presentation to the bank (“letter of credit”).Supplies of goods not intended for resale.Proof of the value of the goods for customs clearance in import/export transactions with non-EU countries.A proforma invoice must be issued under the following conditions and in the following situations: Proforma invoices are mainly used and issued for commercial transactions with countries that are not members of the EU. When talking about invoices, proforma invoice means an invoice that does not contain a request for payment but is needed for accounting and for the duty of declaration. Pro forma (Latin for “for the sake of form) is usually used to describe a document which is provided as a courtesy or satisfies minimum requirements, conforms to a norm or doctrine, tends to be performed perfunctorily or is considered a formality. It is a document that does not ask the recipient to pay, but primarily indicates the value of a consignment of goods and is necessary for tax reasons and for customs and the obligation to declare within the EU – especially when doing business with non-EU countries. It can replace the bill of exchange when the bill of exchange is not available.Antonia KlattLast Updated on 31 August 2020 What is a proforma invoice?Ī proforma invoice is an invoice that is actually not an invoice.A commercial invoice provides important instructions to the freight forwarders, insurance parties, and both parties’ banks.It is convenient for importers to check whether the quantity and amount of goods shipped are consistent with that listed in the contract or letter of credit.It is a necessity for clearing goods and by customs to assess duties, taxes, and other import fees.As commercial invoice is the core document of international business, its functions are as follows. It is issued after the importer has paid the deposit when he confirms the information in the proforma invoice. It doesn’t have a legal commitment for both the supplier and the importer.Ī commercial invoice is a legally enforceable document. However, the proforma invoice is not a formal document. Also, it could be useful for customs clearance in some countries. Applying for importing goods and foreign exchange licenses and issuing letters of credit in some countries.Importers could better understand products and landed costs. Differences between proforma invoice and commercial invoice Different functionsĪ proforma invoice could serve as a contract before signing the formal one or when carrying out a small amount of deal. ![]()
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