A proforma invoice is a preliminary invoice issued by a seller to a buyer, indicating the products or services to be provided, their quantities, and prices. It serves as an estimate or quote for the goods or services, and is not a legally binding document. An example of a proforma invoice might include a list of items being exported from Singapore, along with their quantities, unit prices, and total amounts.
Proforma invoices are important as they provide a clear understanding of the terms of the sale, including the products or services being offered, their prices, and any applicable taxes or fees. They also help to establish a record of the transaction and can be used for customs clearance and other administrative purposes. Proforma invoices have been used for centuries in international trade, and their format has evolved over time to meet changing needs and regulations.