Pro-forma Invoices and VAT Invoices | AccountingWEB

Pro-forma Invoices and VAT Invoices

If I issue a pro-forma invoice and the customer pays, do I NEED to raise a VAT invoice? The customers are just the general public an so are not VAT registered? Obviously when they do pay I will still account for the VAT in my accounts software.





Short description: 
Do I need to raise a VAT Invoice?


Moonbeam's picture

You should always raise a VAT invoice when a sale has been made

Moonbeam |

You are not in a position to know whether the recipient of your invoice can or cannot claim back VAT, but this is not the point. A proforma invoice is just an invitation to pay. It does not form part of a contract and if payment is not made there is no sale. That is why you must send a separate VAT invoice when payment is made and the goods/services are provided.

Tax invoices

shaun king |

If the customer is not a taxable person (a member of the public) in the UK there is no requirement for you to issue a tax invoice. A pro forma invoice is not a tax invoice and is nor recognised as creating any tax point so you can just account for VAT in your records when you receive the monies.