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About proforma invoice _ A Proforma invoice is an invoice provided by a supplier in advance of providing the goods or service. A quotation in the form of an invoice prepared by the seller that details items which would appear on a commercial invoice if an order results. It is more of a customs declaration form used in international trade that describes the parties involved in the shipping transaction, the goods being transported, and the value of the goods. It is the primary document to declare value for customs. It is not a true invoice, because the seller does not record a pro forma invoice as an accounts receivable and the buyer does not record a pro forma invoice as an accounts payable.

There are certain pieces of information that have to be on your invoices if you are charging GST, HST and/or PST. Your invoice must include: • your business name • the date of the invoice • your Business Number (also known as the GST Registration Number) • the purchaser's name • a brief description of the goods or services performed • the total amount paid or payable • the terms of payment • an indication of items subject to GST at 5% or HST at the appropriate provincial rate, or that the items are exempt, and either the total amount of GST/HST charged, or a statement that the GST/HST is included and the total rate of tax • if applicable, an indication of items subject to PST (also known as RST) at the provincial rate, or that the items are exempt, and either the total amount of PST charged, or a statement that the PST is included and the total rate of tax.

Electronic invoices provide an important means of reducing the costs of processing, sending, distributing and maintaining invoices, resulting in a simplification of administrative procedures and a considerable reduction in the amount of time and space consumed, as the invoices are transmitted through telematic means, accomplished by applying technical certification mechanisms (electronic signatures), which guarantee the basic elements required in any invoice (the authenticity of its origin and integrity of its content) and allow them to be maintained in digital format, which affords immediate access to them at any given moment.

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