The pro forma invoice is primarily used in foreign trade.
Commercial transactions with third countries are subject to mandatory declaration. If you export goods to a third country, you must declare their value to customs. And this also applies if the goods are exported free of charge for the recipient – for example in the case of sample shipments, gifts, donations, or a free replacement delivery as part of the guarantee or as a gesture of goodwill.
In such cases, a pro forma invoice is issued instead of a commercial invoice for customs purposes. This only declares the value of the exported goods and therefore has a purely informative function.
In addition, the pro forma invoice is used as an advance copy of a commercial invoice. For example, if the recipient pays in advance. In this special case, the pro forma invoice serves as a payment request.
Pro forma invoices are also used for transactions processed by letters of credit or as a prerequisite for issuing import licenses. The pro forma invoice is then similar to an offer.