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HMRC internal manual

VAT Traders’ Records Manual

HM Revenue & Customs
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Pro-forma invoices: Risks associated with pro-forma invoices

There are a number of risks associated with pro-forma invoices, the most common of which have been listed below:

  1. Customer uses the pro-forma invoices to support input tax deduction.
  2. Customer claims input tax twice (against both the pro-forma invoice and the VAT invoice).
  3. Supplier fails to issue a VAT invoice when a supply has been made (i.e. relies only on the pro-forma invoice).
  4. Supplier uses incorrect tax point (for example issue of VAT invoice rather than receipt of payment).

This list is not exhaustive and you should view with caution any instance of a pro-forma invoice appearing in a trader’s accounting records.