Aqid ERPAn invoice in form, not in tax
A proforma invoice (فاتورة مبدئية) looks like an invoice and is used to obtain payment in advance or a letter of credit: these goods, at these prices, with the VAT the tax invoice will charge, payable on these terms. It is no more a tax invoice than a quotation is: it carries no QR code, creates no VAT and gives no right to deduct input VAT. A tax invoice follows on supply.
- "Proforma Invoice", a number, the date and the date it stays valid to.
- Your details, with the IBAN the advance is paid to.
- The customer's name, address and VAT number, as they will appear on the tax invoice.
- Lines with description, quantity, unit price, taxable amount, the VAT expected at 15 percent and the total.
- The payment terms, and a line for the customer's acceptance.
When the advance arrives
VAT is due at the earliest of supply, invoice and payment, so an advance actually received against a proforma must be invoiced: the money that arrives is the tax event, not the proforma. The tax invoice for the rest follows on supply, with the same lines and prices.
The sample offers ten shelving units and two pallet jacks, 9,900.00 plus 1,485.00 of expected VAT, half payable in advance.
| Shelving, 10 × 620.00 | 6,200.00 + 930.00 VAT |
|---|---|
| Pallet jacks, 2 × 1,850.00 | 3,700.00 + 555.00 VAT |
| Expected total with VAT | 11,385.00 |
| Advance requested, 50% | 5,692.50 |