Proforma invoice means pro#

Whether an entity holding a pro forma invoice in relation to a supply is sufficient to claim a GST credit is dependent on various factors. However, if it does include the words ‘Tax Invoice’, or by including words to the effect ‘If this transaction is completed/paid for within X days, this document becomes a tax invoice’, and it meets all the other requirements, then it appears a pro forma invoice is capable of being a tax invoice under the GST Act.įurther information on meeting the tax invoice requirements are contained on the ATO website and in GSTR 2013/1. Where this is the case the document is unlikely to meet the conditions of paragraph (d) – that is, the document is intended to be a tax invoice, and that this can be clearly ascertained from the document. The document would generally include the words ‘Pro Forma Invoice’, but may not include the actual words ‘Tax Invoice’. Whilst a pro forma invoice may contain the majority of the above requirements it is unlikely that it would contain the words ‘Tax Invoice’. GST Regulations: The current GST Regulations do not currently specify any matters in relation to the requirements for a document to be a tax invoice. Also, the ruling constitutes approval in writing for such documents to be in an approved form pursuant to the Taxation Administration Act 1953. the information set out above), and otherwise meets the requirements of the subsection. * Approved form: Paragraph 7 of GSTR 2013/1 provides that a document is in the approved form if it includes the information required by s 29-70(1) (i.e.

It can be clearly ascertained from the document that the document was intended to be a tax invoice (or if it was issued by the recipient, a recipient created tax invoice).Such other matters as the regulations specify #.If the document was issued by the recipient and GST is payable in relation to any supply – that the GST is payable by the supplier.The amount of GST (if any) payable in relation to each supply to which the document relates.The extent to which each supply to which the document relates is a taxable supply.What is supplied, including the quantity and the price.If the total price of the supply is $1,000 or more (or if the document is issued by the recipient), the recipient’s identity or the recipient’s ABN.

The supplier’s identity and the supplier’s Australian Business Number (ABN).It contains enough information to enable the following to be clearly ascertained:.It is issued by the supplier of the supply to which the document relates (unless it is a recipient created tax invoice, in which case it is issued by the recipient).Tax invoice requirementsįor a document, including a pro forma invoice, to be a tax invoice it must comply with the requirements contained in subsection 29-70(1) of the GST Act. Where a pro forma invoice has been issued questions arise as to whether that document is a tax invoice for GST purposes and whether it meets the requirements for an entity to claim a GST credit on the acquisition. They differ from a normal invoice in not being a demand or request for payment. Pro forma invoices are commonly used as preliminary invoices with a quotation, or for customs purposes in importation. It notes the kind and quantity of goods, their value, and other important information such as weight and transportation charges. ( source)Īn abridged or estimated invoice sent by a seller to a buyer in advance of a shipment or delivery of goods. Pro forma, Latin for “as a matter of form” or “for the sake of form,” invoices often come into play with international transactions, especially for customs purposes on imports. The invoice will typically describe the purchased items and other important information, such as the shipping weight and transport charges. We have included below some definitions of a pro forma invoice:Ī pro forma invoice is a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods. In this article we will discuss the GST implications relating to the receipt of pro forma invoices.Ī pro forma invoice is generally referred to as a preliminary bill of sale, and sometimes may be referred to as an estimate or quote. In other cases, a document labelled ‘ pro forma invoice’ may in fact be intended to be a final invoice.

This may arise in circumstances such as an offer for the renewal of a yearly membership or subscription. It is not uncommon for businesses supplying goods or services to first issue a pro forma invoice to their clients before any goods or services are provided or agreed to being provided. Does a pro forma invoice constitute a tax invoice? And if so, does a pro forma invoice allow an entity to claim GST credits?

Proforma invoice means