BUSINESS DOCUMENTS · KENYA
Proforma Invoice vs Tax Invoice in Kenya
A proforma invoice presents the expected details of a transaction before the final invoice. A tax invoice records a taxable supply and must meet the applicable legal and electronic-invoicing requirements.
What is a proforma invoice?
A proforma is a preliminary document. Businesses use it to communicate expected products, services, quantities, prices, validity, delivery and payment conditions before issuing the final invoice.
What is a tax invoice?
A tax invoice documents a taxable transaction and contains the supplier, buyer, transaction, tax and electronic-invoice details required under the applicable rules. The correct requirements depend on the supplier, transaction and current KRA guidance.
Key differences
Timing: a proforma normally comes before the final transaction; the invoice records the final supply or payment request.
Purpose: a proforma helps obtain approval or arrange advance payment; an invoice creates an accounting and payment record.
Tax status: a proforma should not be presented as a tax invoice.
Final details: the invoice should use confirmed quantities, dates, customer details and tax treatment.
Label the proforma clearly
Display “Proforma Invoice” prominently. State that it is not a tax invoice or final demand for payment. Include a reference and validity date so the customer understands how long the proposed prices and terms apply.
When should it become an invoice?
Create the final invoice after the transaction is confirmed according to your commercial process. Review the actual quantities, delivery date, customer details, pricing and tax treatment instead of copying the proforma without checking.
Review a proforma invoice example
Download a free fictional example showing itemised prices, validity and clear proforma wording.
Open the proforma guide