Understanding Proforma vs Tax Invoice
At {{COMPANY_NAME}}, you may encounter two types of invoices: Proforma Invoices and Tax Invoices. Understanding the difference is important for accounting, tax compliance, and record-keeping purposes.
What Is a Proforma Invoice?
A Proforma Invoice (prefixed with PI-) is a preliminary invoice generated before payment is received. It serves as a request for payment.
Characteristics:
- Prefix: PI- (e.g., PI-2026-00456)
- Generated: When a service is ordered or a renewal is due
- Status: Unpaid
- Legal status: NOT a valid tax document
- Purpose: Informs the customer of the amount due
- GST claim: Cannot be used to claim GST input tax credit
When You Receive a Proforma Invoice:
- A new service has been ordered
- A renewal is coming due
- A manual invoice has been created for additional services
What Is a Tax Invoice?
A Tax Invoice (prefixed with INV-) is the official invoice generated after payment is confirmed. It is the legally valid document for tax purposes.
Characteristics:
- Prefix: INV- (e.g., INV-2026-00789)
- Generated: After successful payment
- Status: Paid
- Legal status: Valid tax document under GST law
- Purpose: Official record of the transaction
- GST claim: Can be used to claim GST input tax credit (if GSTIN is on file)
When You Receive a Tax Invoice:
- After a successful payment via any payment method
- Automatically emailed to your registered email address
- Available for download in your client portal
Side-by-Side Comparison
| Feature | Proforma Invoice (PI-) | Tax Invoice (INV-) |
|---|---|---|
| Generated | Before payment | After payment |
| Legal validity | Not a tax document | Valid tax document |
| GST/tax details | Estimated | Final |
| Input tax credit | No | Yes (with GSTIN) |
| Prefix | PI- | INV- |
| Status | Unpaid | Paid |
| Accounting use | Reference only | Official record |
The Invoice Lifecycle
Here is how the invoice process works at {{COMPANY_NAME}}:
- Order placed or renewal due -- A Proforma Invoice (PI-) is generated and emailed to you.
- Payment made -- You pay via your preferred payment method.
- Payment confirmed -- The system generates a Tax Invoice (INV-) automatically.
- Tax Invoice emailed -- The INV- document is sent to your registered email and appears in your billing portal.
- Proforma Invoice updated -- The original PI- is marked as paid and linked to the corresponding INV-.
GST Compliance
For Indian businesses claiming GST input tax credit:
- Only Tax Invoices (INV-) are valid for ITC claims
- Ensure your GSTIN is added to your {{COMPANY_NAME}} profile before making payment
- The Tax Invoice will include your GSTIN, the supplier's GSTIN, SAC code, and GST breakup (CGST + SGST or IGST)
- See our guide on How to Get GST Invoice for detailed instructions
Tip: Always add your GSTIN to your profile BEFORE making a payment. GST invoices cannot be regenerated retroactively with a GSTIN that was not on file at the time of payment.
Frequently Asked Questions
Can I pay using a Proforma Invoice?
Yes. The Proforma Invoice contains a payment link or instructions. Once you pay, a Tax Invoice is generated automatically.
Why did I receive a PI- but not an INV-?
The Tax Invoice (INV-) is generated only after payment is confirmed. If you have paid but not received it, check your spam folder or contact support.
Can I use the Proforma Invoice for accounting?
A Proforma Invoice is for reference only. For official accounting and tax purposes, always use the Tax Invoice (INV-).
Can I get a revised invoice?
If your invoice contains an error (e.g., wrong GSTIN or company name), contact support. We can issue a credit note and revised invoice where applicable.
How long are invoices available?
All invoices (both PI- and INV-) remain in your account permanently and can be downloaded at any time.
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Need help? Contact us at {{SUPPORT_EMAIL}} or open a ticket at {{SUPPORT_URL}}.