Proforma Invoice: What It Is and When to Use One in NZ

Short answer: A proforma invoice (also written “pro forma invoice”) is a preliminary bill you send before a sale is final. It sets out what the customer will be charged so they can approve the spend, arrange the money or pay a deposit. It is not the invoice for the sale and should not be used as your taxable supply information: once you supply the goods or services, you issue a proper invoice. Watch the GST timing, though: in New Zealand a deposit received under an unconditional agreement triggers the time of supply, so GST can be due before the job is finished.

No New Zealand law defines a “proforma invoice”. What applies in the 2027 tax year (1 April 2026 – 31 March 2027) are Inland Revenue’s rules on taxable supply information and on when GST is accounted for, the same as for any document you give a customer. The document that usually comes first is a quote, covered in the NZ quote template; the one that comes after is the real invoice, laid out in the NZ invoice template.

What is a proforma invoice?

A proforma invoice is a statement, laid out like an invoice, of what a sale will cost, issued before the sale is complete. “Pro forma” is Latin for “as a matter of form”: the document has the form of an invoice without doing an invoice’s job.

A typical New Zealand pro forma shows:

• your name or trading name, contact details and, if you are GST registered, your GST number
• the customer’s name and address
• each item or service with its quantity and price, the subtotal, GST if you are registered, and the total
• any deposit you want before you start work or order goods
• how long the prices hold
• a clear statement such as “Pro forma only: this is not a tax invoice.”

Give pro formas their own number series, such as PF-014, so your real invoice numbers run in an unbroken sequence.

When would you use a proforma invoice?

You use one when the customer needs the final figures in invoice form before they commit, or before you will start.

Situation	Why a pro forma helps
You want a deposit before ordering materials or custom-made goods	The customer sees exactly what the deposit is part of
A business customer needs internal approval or a purchase order	Their accounts team can approve the spend before the real invoice arrives
The customer is arranging finance, an insurance claim or a grant	A lender, insurer or funder often wants the costs set out on your letterhead
You are selling goods to an overseas buyer	The buyer, their bank or their customs broker may want the expected value before the goods ship

For most sole traders it is the first row: a joiner, builder or signwriter who has to buy materials up front sends a pro forma, takes a deposit and invoices when the work is done.

Two notes for exporters. Goods you export are usually zero-rated, so a GST-registered seller shows GST at 0% when the export conditions are met. And a pro forma rarely replaces the final commercial invoice that travels with the goods, so ask the freight forwarder or the buyer’s broker which documents they need.

Is a proforma invoice a tax invoice?

No. Since 1 April 2023, New Zealand law no longer requires a single document called a tax invoice. Instead, a GST-registered seller must provide and keep taxable supply information, which can be held across invoices, contracts and other records. For a sale over $200 that information includes your GST number, the date, a description and the GST; over $1,000 it also includes the buyer’s details if the buyer is GST registered.

A pro forma is a poor home for that information, because it describes a sale that has not happened yet and may still change. Mark it “not a tax invoice”, and give the customer a proper invoice once the goods or services are supplied, or once a deposit makes GST payable (see below). For sales over $200, Inland Revenue requires you to provide taxable supply information to a GST-registered buyer within 28 days of a request, or by another date you agree.

If you are not GST registered, leave GST off the pro forma entirely, and the follow-up will be a plain invoice with no GST line. How to invoice as a contractor in NZ covers both cases.

Do I pay GST on a deposit taken against a proforma invoice?

Often yes, and earlier than people expect. Under section 9(1) of the GST Act, the time of supply is the earlier of when an invoice is issued and when any payment for the supply is received. Inland Revenue’s interpretation statement IS 10/03 on GST time of supply treats a deposit received under an unconditional agreement as “any payment”, so it triggers the time of supply.

How that reaches your GST return depends on your accounting basis:

Your GST accounting basis	What a deposit does
Payments basis	You account for GST on money as you receive it, so the deposit carries its own share of the GST in the period it arrives
Invoice basis, or hybrid basis (sales on the invoice basis)	The deposit triggers the time of supply, so GST on the whole sale can fall into the period the deposit arrives, even if you invoice the balance later

Contracts paid in progress payments, which are common in building work, have their own time-of-supply rules, so check with your accountant if your deposits work that way.

Is the pro forma itself an invoice for these rules? The GST Act defines an invoice as “a document notifying an obligation to make payment”. A pro forma that only previews prices and asks nothing of the customer is generally not one. A pro forma that tells the customer to pay now may be, so do not write “payment due” on a pro forma unless you mean it. If you are asking for a deposit, it is cleaner to issue a real invoice for the deposit. For the arithmetic, see how to calculate GST in NZ.

What is the difference between a proforma invoice, a quote and an invoice?

A quote offers a price, a pro forma confirms the figures before the sale, and an invoice asks for payment once you have supplied.

	Quote	Proforma invoice	Invoice
When	Before the customer agrees to the job	After agreement in principle, before supply	When you supply, or when payment falls due
Purpose	Offer to do the work at a price	Show the final figures so the customer can approve, fund or pay a deposit	Ask for payment and record the sale
Customer’s next step	Accept or decline	Approve, arrange the money or pay a deposit	Pay
GST record for the sale	No	No	Yes, if you are GST registered

Many sole traders skip the pro forma altogether: a clear quote, accepted in writing, followed by a deposit invoice does the same job with one less document. The pro forma earns its place when a third party, such as a lender, a funder or an overseas buyer’s bank, wants an invoice-shaped document before money moves.

What does a proforma invoice look like?

Here is a pro forma from a GST-registered joiner on the payments basis, asking for a 40% deposit before ordering materials. All names and numbers are made up; copy the layout and replace the details.

PRO FORMA INVOICE
Pro forma only: this is not a tax invoice.
An invoice will be issued for the deposit when it is paid,
and for the balance on completion.

Pro forma no:   PF-014
Date:           6 October 2026
Prices valid:   until 5 November 2026

From:           Aroha Ngata, Ngata Joinery
                12 Example Street, Nelson
GST number:     123-456-789

To:             Sam and Priya Lee
                40 Sample Road, Richmond

Description                         Qty      Rate        Amount
Kitchen cabinetry: materials         1       $6,800.00   $6,800.00
Workshop manufacture                48 hrs   $85.00      $4,080.00
Installation                        12 hrs   $85.00      $1,020.00
Delivery                             1       $100.00     $100.00

Subtotal (excl. GST)                                     $12,000.00
GST at 15%                                                $1,800.00
Total (incl. GST)                                        $13,800.00

Deposit to order materials (40%):                         $5,520.00
Balance on completion:                                    $8,280.00

When the Lees pay the $5,520 deposit, Aroha issues invoice 2026-088 for it. On the payments basis, the deposit carries $720 of GST ($5,520 × 3 ÷ 23) in the period it arrives, and the $8,280 balance carries the other $1,080 when it is paid. Her final invoice lists the whole job, shows the deposit already received and asks for the balance, so the customer’s records and hers add up to the same $13,800.

Keeping the paperwork under one job, and where does Keel fit?

A pro forma is one more document to track, so keep it with the quote, invoices and material receipts for that job.

Keel: Invoice Maker & Receipts, an iPhone app by Ilura Technology OÜ, is built around jobs. In Keel the estimate is the pre-sale document: when the customer accepts it, it becomes the invoice in one tap, and the estimate, receipts, expenses and invoices stay under the same job and customer. “Who owes you” shows unpaid invoices and prepares reminder drafts that you review and send yourself; nothing is sent automatically. Records stay on your iPhone, with no account, no bank connection and no cloud sync, and the App Store privacy label reads “Data Not Collected”.

Keel is a record keeper, not a compliance tool: it does not decide when GST is due on a deposit, file GST returns or connect to Inland Revenue. It is free with no invoice limit (free invoices carry a small “Made with Keel” footer), and Keel Lifetime is a one-time purchase of $249.99 USD (the App Store shows your local price) that adds custom branding, signature, premium templates and accountant-ready exports and reports. Keel on the App Store. More guides are on the New Zealand hub.

Frequently asked questions

What does proforma invoice mean? A proforma invoice is a preliminary bill that shows a customer what a sale will cost before it is final. It looks like an invoice but is not a demand for payment for a completed sale. Customers use it to approve the spend, arrange finance or pay a deposit, and the real invoice follows once you supply the goods or services.

Is a proforma invoice the same as a tax invoice in NZ? No. A pro forma comes before the sale, and it should say clearly that it is not a tax invoice. Once you supply, a GST-registered seller provides taxable supply information, usually on an ordinary invoice, showing the GST number and GST for any sale over $200.

Can my customer claim GST from a proforma invoice? They should not rely on one. A GST-registered buyer needs taxable supply information for a purchase over $200, including your GST number and the GST, and a pro forma marked “not a tax invoice” is not meant to be that record. Give them a proper invoice for the deposit or the completed sale.

Do I charge GST on a deposit in NZ? If you are GST registered, generally yes. A deposit received under an unconditional agreement counts as a payment that triggers the time of supply. On the payments basis you account for the GST in the deposit when it arrives; on the invoice basis GST on the whole sale can fall into that period, unless progress-payment rules apply.

What is the difference between a proforma invoice and a quote? A quote is an offer to do the work for a price, which the customer accepts or declines. A pro forma comes after the customer has agreed in principle and sets out the final figures in invoice form, usually so they can approve the spend, arrange the money or pay a deposit. Many sole traders go straight from an accepted quote to a deposit invoice.

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This article is general information, not tax advice. Consult a qualified New Zealand tax professional.