What Is a Proforma Invoice — and When Do You Actually Need One?

A proforma invoice often shows up at the most confusing moment: before the work is done, before any money changes hands, and sometimes even before a final agreement feels fully settled. It looks like an invoice — but isn’t one. That alone is enough to make many freelancers pause and wonder whether they’re about to do something wrong.

Let’s clear this up calmly.

A proforma invoice is a preliminary document. Think of it as a detailed price confirmation rather than a demand for payment. It outlines what you plan to deliver, how much it will cost, and under which conditions — without creating a legal obligation to pay yet.

What exactly is a proforma invoice?

A proforma invoice looks very similar to a regular invoice — and that’s exactly why it often causes confusion. Visually, the layout is almost the same: company details, service description, prices, and totals. But the purpose is different.

The simplest way to understand it is this:
a proforma invoice shows what the invoice will look like, not what it is yet. For comparison, this is what a standard invoice looks like.

Unlike a final invoice, a proforma invoice:

• does not request payment
• does not create a legal obligation to pay
• is not recorded in accounting or tax reports

Its role is to confirm scope and pricing before work begins or before the final invoice is issued.

What does a proforma invoice look like in practice?

For example, this could look like:

PROFORMA INVOICE
Project: Branding and logo design
Estimated delivery: April 2025

Subtotal: €1,800
VAT (if applicable): €342
Estimated total: €2,142

This document is provided for confirmation only and is not a request for payment.

And here is how a regular invoice would differ:

INVOICE
Invoice number: INV-2025-017
Invoice date: April 10, 2025
Payment due: April 24, 2025

Total due: €2,142

When do you actually need a proforma invoice?

Not every project requires one. In many cases, a written agreement or email confirmation is enough. However, a proforma invoice becomes genuinely useful in a few specific situations.

You may need a proforma invoice when:

• a client asks for a formal cost breakdown before approving a budget
• you work with international clients who need documentation for internal approval
• goods or services must be pre-approved before delivery
• you’re dealing with advance payments or deposits

In cross-border work, especially within and outside the EU, a proforma invoice is often expected as part of standard business communication.

Generally speaking, a proforma invoice turns verbal agreements or email discussions into something concrete, making expectations visible on both sides. For clients, this creates confidence and simplifies decision-making. For freelancers and small business owners, it helps lock in scope and pricing early, lowering the risk of misunderstandings or payment disputes later on.

When you don’t need one

If your client already agreed to your quote and payment terms in writing, a proforma invoice may be unnecessary.

If you’re unsure, ask yourself one simple question:
Does this document help my client say “yes” more easily?
If the answer is no, you can usually skip it.

Is a proforma invoice legally binding?

No — a proforma invoice is not legally binding in the same way a final invoice is. It does not trigger payment obligations and cannot be used for accounting or tax reporting.

That’s why it’s important to clearly label it as “Proforma Invoice” and include a note stating that it is not a request for payment. This protects both you and your client from misunderstandings.

Proforma invoice vs. regular invoice: a quick comparison

A proforma invoice:

• is sent before the work is completed
• confirms prices and scope
• is not booked in accounting systems

A regular invoice:

• is sent after delivery
• requests payment
• is used for tax and accounting purposes

They serve different roles — and mixing them up is a common beginner mistake.

A final, reassuring thought

If proforma invoices feel unnecessary or confusing, you’re not alone. Many freelancers only encounter them when working with larger or international clients. Using one doesn’t mean your business has become complicated — it means it has grown.