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VAT on a proforma invoice

The company I work for has received a proforma invoice which gives a net, VAT and gross value. The document states that it is not a VAT invoice and that a VAT invoice will be issued on receipt of payment.
Is this the correct way to issue a proforma invoice? Should we not hold off paying the VAT until we actually get the VAT invoice, or can the VAT be paid in advance?

This is the first time we have received a proforma with the VAT on. Previous suppliers have issued proforma invoices without the VAT, so we have paid the net amount and then paid the VAT once the VAT invoice arrives.

Many thanks.

Best Answer

Answers

  • WinnieTiggerEeyoreWinnieTiggerEeyore Registered Posts: 3
    Thank you, amurray, for your response.

    I feel more comfortable in processing the invoice if it is not unusual for VAT to appear on the proforma.
    amurray
  • SimplyLearnFinanceSimplyLearnFinance UKRegistered Posts: 17
    In my experience a pro-forma invoice is viewed a little like a payment on account. Adjustments are then made to take account of the VAT on receipt of the VAT invoice/receipt. Hotels tend to use a pro-forma process for advance bookings.
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