Invoice vs Proforma: Key Differences

What is an invoice?

An invoice is an official tax document that confirms the completed supply of goods or services. It creates a legal obligation for payment and serves as the basis for VAT calculation and deduction. An invoice must contain all mandatory elements prescribed by the VAT Law — the seller's and buyer's EDB, detailed item descriptions, VAT recapitulation, and the total amount. Every issued invoice must be recorded in the company's books and reported to UJP.

What is a proforma invoice?

A proforma invoice is a document of an informational nature. It represents an offer or a payment proposal but does not create a legal obligation for the buyer. A proforma invoice is issued before the supply takes place — most commonly as a prerequisite for advance payment or to inform the buyer of expected costs. A proforma invoice is not a tax document and does not enter the VAT records.

Key differences

• Legal status — an invoice is legally binding, a proforma is not
• VAT — an invoice enters the VAT return, a proforma does not
• Payment obligation — an invoice creates an obligation, a proforma is just an offer
• Record-keeping — an invoice must be recorded in the books, a proforma does not
• Sequential number — an invoice requires a mandatory sequential number, a proforma can have flexible numbering
• Supply date — an invoice states the date of completed supply, a proforma has no supply
• Legal protection — an invoice is evidence in court, a proforma is not

When to use a proforma invoice

A proforma invoice is a useful business tool in several situations. Use it when you want to inform the buyer of the price before performing the service, when requesting advance payment before delivery, for customs purposes in import/export, or when you need budget approval from the client before starting work.

• Advance payment — send a proforma so the client pays before delivery
• Detailed quote — show exactly what will be invoiced
• Customs formalities — required for import to declare the value
• Budget approval — the client can use it for internal approval
• International trade — standard practice for cross-border transactions

Best practices for Macedonian businesses

To avoid issues with UJP and maintain a professional relationship with your clients, follow these best practices when working with invoices and proforma invoices.

• Always issue an invoice after the supply is completed — a proforma does not replace an invoice
• Clearly label the document — write "PROFORMA" to avoid confusion
• Do not include proformas in your VAT return — this is a mistake that can lead to penalties
• Link the proforma to the invoice — reference the proforma number on the final invoice
• Keep both documents — both the proforma and invoice should be archived
• Use software that distinguishes them — Facturino automatically separates them into different registers