Pro Forma Invoices

[NETLINK]

Hello,

 

A pro forma invoice is a document that states a commitment on part of the seller to deliver the products or services as notified to the buyer for a specific price. It is thus not a true invoice.

 

Therefore, for EU businesses, if an invoice is a pro forma invoice, it should include the words "This is not a VAT invoice", or "Pro forma invoices should not be treated as VAT invoices".

 

Would it be possible to add this as a feature? To add this text below or above the Terms. Or possibly in small font underneath where it says "Pro Forma Invoice".

[Paul]

Does "Pro Forma" not indicate that it is not a VAT invoice? Can you reference the rule that says those words must be included as well as where it must be placed, if anywhere in particular?

 

Will adding it to your terms resolve the issue?

 

We are certainly open to adding this into the core, if it is clearly required by all EU businesses. Often these kinds of rules vary by region, so we need to be certain that it is required globally.

[NETLINK]

You're right. But I'm not sure if it technically indicates it directly. See point 2.1 on the following resource:

http://www.taxdonut.co.uk/tax/vat/vat-problems/common-vat-problems

 

Also here:

https://www.e-conomic.com/accountingsoftware/accounting-words/pro-forma-invoice

 

And after a ruling by the Federal Finance Court of Germany (Az. V R 44/09), it is recommended to clearly state on pro-forma invoices that the document does not authorize any kind of pre-tax deductions.

 

And here it is directly from HMRC (see very bottom in bold):

http://www.hmrc.gov.uk/manuals/vatrecmanual/VATREC9010.htm

 

I can't seem to find an official reference that's valid for all EU member states.

 

Adding it to the terms would resolve the issue. But I think it has the potential to cause confusion if it were mentioned on both Pro Forma and VAT invoices.

 

Perhaps an extra text area under settings for adding terms specific to PF invoices? Or maybe a separate text-area for each type of invoice. That way, it would give more flexibility and wouldn't have to be hardcoded. Since non-EU countries may use PF invoicing but not VAT.