Proforma Invoices vs. Other Invoice Types: Key Differences

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Proforma Invoices vs. Commercial Invoices
Proforma invoices are used before the actual delivery of goods. They give the buyer a general idea of the cost, such as the price, shipping cost, and other costs. Commercial invoices are raised for commercial purposes after the delivery of goods or services.

Proforma invoices do not contain legal obligations. They are used to estimate costs but do not create legal relations binding upon the parties. However, commercial invoices are legal and contain the record of the terms of sales and the final payment amount in legal terms. They draw an obligation that can be legally enforced on the seller and the buyer in case of any litigations.

Proforma Invoices vs. Tax Invoices
The most common application of proforma invoices includes customs, shipment belize phone number list handling, and addressing financial issues. They assist in enabling the early stages of a transaction by indicating the costs and terms before the sale. Tax invoices contain information needed for tax purposes. They provide evidence to tax authorities and help recover tax credits.

Tax invoices are legal documents that the buyer and seller use as a record for taxation. These are crucial to meet legal requirements on tax and can prove claims for tax credits or tax deductions. Proforma invoices, on the other hand, are not legal documents and do not confirm the transaction in the legal system. They are forecasting documents for expense estimates.