Sales documents get confused all the time. Sending the wrong one can delay payment — or create a VAT problem. This is the quick guide to which document to use, and when.
The short answer
| Document | What it is | Ask for payment? |
|---|---|---|
| Quotation | An offer of price before the customer commits | No |
| Proforma invoice | A preliminary bill, often for advance payment or customs | Sometimes |
| Tax invoice | The official bill for a completed supply, with VAT details | Yes |
| Delivery note | Proof that goods were delivered | No |
| Credit note | Reduces or cancels an invoice | No (refund) |
Quotation
A quotation says “this is what it will cost”. It should list items, prices, VAT, terms and a validity date. It is not a demand for payment and, on its own, not a tax document. Once accepted, it becomes an order and later an invoice.
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Create quotations, proformas, invoices, credit notes and delivery notes — and convert one into the next.
Start free — no credit cardProforma invoice
A proforma looks like an invoice but is not a tax invoice. Use it when a customer needs a document to arrange payment or an import permit before delivery. Clearly label it “Proforma” and issue the real tax invoice when the supply takes place.
Tax invoice, delivery note and credit note
The tax invoice is the legal record of the sale and the basis for your VAT return. A delivery note proves goods arrived. A credit note corrects or cancels an earlier invoice — never edit an issued invoice, issue a credit note instead.
Frequently asked questions
Can I use a proforma invoice for VAT?
No. Only a proper tax invoice supports VAT recovery.
Is a quotation the same as an estimate?
In practice yes — both are price offers made before work starts.
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