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What is a Proforma Invoice? Proforma vs Regular Invoice

A proforma invoice is a preliminary document that provides an estimate of costs before a transaction is completed. Unlike a regular invoice, a proforma is NOT a legal tax document and cannot be used for VAT deduction or NAP reporting. It serves as a price quotation or order confirmation.

Proforma vs Tax Invoice

Key differences: proformas have no legal accounting status, cannot be used for VAT deduction, are not included in NAP reports, and typically precede the actual invoice. NeuralParse identifies proformas via the doc_type field and marks them accordingly.

FAQ

Does NeuralParse parse proforma invoices?

Yes. NeuralParse extracts data from proformas and identifies them as such in the doc_type field.

Related Terms

VAT (Value Added Tax)

Understanding VAT on invoices: rates, calculation, and how automated parsing handles VAT extraction.

Credit Note

A credit note reverses or reduces a previous invoice. Learn when they're used and how NeuralParse handles them.

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