The proforma invoice is a document of great importance for international trade. It is used to provide detailed information about a business transaction before the shipment of the goods or services in question is completed.
In this blog we will delve into this topic and try to answer some frequently asked questions about the proforma invoice.
1. What is a proforma invoice?
A proforma invoice is a document used in the field of international trade like a sales offer. It differs from the commercial invoice, in that the latter is a legal document used to record actual purchase and sale transactions, and is used for accounting and tax purposes.
The proforma invoice contains detailed information about the product or service offered and may include other information about the supplier and the buyer, such as their names and addresses.
2. What is the proforma invoice used for?
The proforma invoice is a document used mainly for two purposes:
– As a sales offer
– As a support document in customs management.
As an offer to sell, The proforma invoice is used to present to the buyer the conditions and terms of a proposed sale., as well as the terms of payment and delivery, allowing the buyer to evaluate and make an informed decision.
In addition, the proforma invoice is also used as a supporting document for customs management. In many countries, imported products are subject to customs duties and taxes, and customs authorities require a document that provides accurate information about the product and its value.
It is essential to highlight that The proforma invoice is a crucial tool in international trade, and its accuracy and completeness are essential to ensure an efficient and error-free import process..
Consequently, special attention must be paid to the preparation of this document, in order to avoid possible inconveniences or delays in the import process.
3. What is the difference between a proforma invoice and a commercial invoice?
The main difference between a proforma invoice and a commercial invoice lies in its legal and accounting nature.
Indeed, the proforma invoice does not represent a real transaction and lacks legal validity for accounting or tax purposes, while the commercial invoice is a legal document that certifies a real purchase and sale transaction and is used for accounting and tax purposes.
It is important to note that, in formal terms, the proforma invoice is used as a sales offer to present the buyer with the conditions and terms of a proposed sale, while the commercial invoice constitutes reliable proof of a commercial transaction and is used as such by the tax and accounting authorities.
Therefore, it is crucial that the commercial invoice meets the legal and accounting requirements necessary for its validity and acceptance.
4. What information should a proforma invoice include?
The proforma invoice constitutes a fundamental document in carrying out commercial transactions.
In that sense, It is required to contain detailed and accurate information about the product or service offered, including quantity, price, weight, dimensions, and other relevant details.. Likewise, it is convenient to include information related to the supplier and the buyer, such as their names and addresses.
In addition to the above, the proforma invoice may include additional information such as payment and delivery terms, the offer expiration date, and any other information relevant to the proposed transaction.
Thus, greater transparency and clarity in the negotiation is guaranteed, thus facilitating the decision process of both parties involved.
In conclusion, the careful preparation of a proforma invoice is essential to ensure the success of any business transaction.
5. Is it mandatory to issue a proforma invoice in international trade?
The issuance of a proforma invoice in the field of international trade it is not legally required; however, it is a general and recommended practice.
Said invoice is very useful, since it allows the precise establishment of the terms and conditions of the proposed sale, as well as providing relevant information for customs management.
In addition, it plays a crucial role in preventing conflicts that may arise between the supplier and the buyer, since it allows to clearly define the expectations and conditions of the proposed transaction.
In consecuense, its use is highly advantageous and beneficial for all parties involved.
6. What are the advantages of using a proforma invoice?
The use of a proforma invoice offers various advantages in the field of international trade.
Among the most relevant, the following stand out:
– Clarity and transparency: The proforma invoice provides a detailed description of the product or service offered, as well as the terms and conditions of the proposed sale, thus avoiding possible misunderstandings between the parties.
– Facilitates customs management: The proforma invoice provides important information about the product, such as its value and its country of origin, which may be necessary to comply with customs and payment of taxes and duties requirements.
– Set expectations: By clearly presenting the terms and conditions of the proposed sale, the pro forma invoice helps set buyer and supplier expectations, which can help avoid future problems and establish a stronger and more successful business relationship.
– Facilitates negotiation: The proforma invoice can be used as a negotiation tool by being modified to reflect the conditions and terms agreed between both parties.
In short, the proforma invoice is a useful and effective tool for carrying out commercial transactions internationally, since it helps to establish a relationship of trust and transparency between the parties involved.
7. How does the proforma invoice differ from the commercial invoice in terms of taxes and duties?
In terms of taxes and duties, the commercial invoice is the document used to calculate customs duties and taxes because it provides precise details about the product and its value.
On the other hand, the proforma invoice can be used as a support document for customs management, although it has no legal validity for tax or accounting purposes.
In conclusion, the proforma invoice is a document of great importance in international trade, since it is used as a offer of sale and as a support document for customs management.
It provides detailed information about the product or service offered, as well as the terms and conditions of the proposed sale. Although it is not mandatory to issue a proforma invoice, it is a common and recommended practice.
story set image on Freepik
Image from rawpixel.com on Freepik
