Pro-forma invoices are often used to offer goods or services to potential customers. Such offers may or may not be taken up and unless payment is received goods or services will not be supplied.
Where a trader uses pro-forma invoices in this way they cannot be used as evidence for the reclaim of input tax. HMRC state that this is so even if they show all the details required for a ‘VAT invoice’ (also known as a ‘Tax invoice’). HMRC state that the supplier should clearly mark his invoice ‘THIS IS NOT A TAX INVOICE’.