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What is a Proforma Invoice? Proforma vs Regular Invoice

A proforma invoice is a preliminary document that provides an estimate of costs before a transaction is completed. Unlike a regular invoice, a proforma is NOT a legal tax document and cannot be used for VAT deduction or NAP reporting. It serves as a price quotation or order confirmation.

Proforma vs Tax Invoice

Key differences: proformas have no legal accounting status, cannot be used for VAT deduction, are not included in NAP reports, and typically precede the actual invoice. auwo invoices identifies proformas via the doc_type field and marks them accordingly.

FAQ

Does auwo invoices parse proforma invoices?

Yes. auwo invoices extracts data from proformas and identifies them as such in the doc_type field.

Related Terms

VAT (Value Added Tax)

Understanding VAT on invoices: rates, calculation, and how automated parsing handles VAT extraction.

Credit Note

A credit note reverses or reduces a previous invoice. Learn when they're used and how auwo invoices handles them.

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