Proforma Invoice (Malaysia)
PROFORMA INVOICE
PROFORMA INVOICE
Seller / Exporter: [Seller Name] | SSM No.: [Seller S S M]
[Seller Address]
Tel: [Seller Phone] | Email: [Seller Email]
Proforma Invoice No.: [Proforma Number] | Date: [Proforma Date] | Valid Until: [Validity Date]
Buyer / Importer: [Buyer Name]
[Buyer Address]
Attn: [Buyer Contact]
Description of Goods / Services
[Goods Description]
TOTAL: [Total Amount] ([Currency])
Shipment and Payment Terms
Incoterms: [Incoterms] | Port of Loading: [Port Of Loading] | Port of Destination: [Port Of Destination]
Country of Origin: [Country Of Origin] | Estimated Delivery: [Estimated Delivery]
Payment Method: [Payment Method] | Currency: [Currency]
Notes and Validity
This Proforma Invoice is issued for the purpose of buyer approval, Letter of Credit application, customs pre-clearance, and/or import permit application. It is not a Tax Invoice and does not constitute a demand for payment. A formal Tax Invoice will be issued upon confirmation of the order and completion of delivery.
The prices and terms stated herein are valid until [Validity Date]. After this date, prices are subject to revision without notice.
For Letter of Credit purposes: this Proforma Invoice should be used as the basis for the L/C, which must be opened by [Validity Date] to ensure the stated prices and delivery schedule can be honoured.
Authorised Signatory
________________
Signature
What Is a Proforma Invoice (Malaysia)?
A Proforma Invoice in Malaysia sets out the charges due and the payment details for the transaction it records.
The Proforma Invoice is governed by the Contracts Act 1950 (Act 136) as an offer or pre-contractual document. Once the buyer accepts the Proforma Invoice (by signing, issuing a purchase order, or paying a deposit), the accepted Proforma Invoice may constitute a binding contract under the Contracts Act 1950 if all essential terms are present. In export trade, the buyer's acceptance of a Proforma Invoice typically triggers the buyer's application for a Letter of Credit (LC) from their bank under the Uniform Customs and Practice for Documentary Credits (UCP 600).
The Customs Act 1967 (Act 235) and Royal Malaysian Customs Department (RMCD) require a Proforma Invoice for import and export customs declarations when the final commercial invoice is not yet available — the Proforma Invoice provides the customs value of the goods for the purpose of computing import duties, excise duties, and SST at the port of entry. The Proforma Invoice must state the price, terms of delivery (Incoterms 2020), and currency to enable the Customs Agent to complete the Customs Import Declaration (K1 form) or Customs Export Declaration (K2 form).
For letters of credit, Malaysian banks — including Maybank, CIMB Bank, Public Bank, and RHB Bank — require the Proforma Invoice to be submitted by the importer as part of the LC application, as it provides the description, value, and quantity of goods that the LC will cover. The Proforma Invoice typically references the applicable Incoterms (e.g., FOB, CIF, EXW) published by the International Chamber of Commerce (ICC).
The legal framework governing the Proforma Invoice (Malaysia) in Malaysia draws on several key statutes and regulatory bodies. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Parties executing a Proforma Invoice (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Companies Act 2016 (Act 777) sets the foundational requirements.
When Do You Need a Proforma Invoice (Malaysia)?
A Proforma Invoice in Malaysia is used in several trade and commercial contexts before the final transaction is confirmed.
A Proforma Invoice is needed when a Malaysian importer applies to a licensed bank for a Letter of Credit (LC) to pay an overseas supplier — the bank requires the Proforma Invoice to confirm the description, value, quantity, and delivery terms of the goods to be imported before issuing the LC.
A Proforma Invoice is required when a Malaysian exporter quotes a foreign buyer for goods to be shipped, providing the buyer with a document they can use to obtain import permits, customs pre-clearance, or government approval in their country before confirming the purchase order.
A Proforma Invoice is needed for customs purposes when a shipment of goods arrives in Malaysia before the final commercial invoice is available — the Proforma Invoice allows the Royal Malaysian Customs Department (RMCD) to provisionally assess customs duties under the Customs Act 1967 (Act 235) pending the final invoice.
A Proforma Invoice is required when a Malaysian supplier requests a buyer's advance payment (deposit) before commencing production of custom-ordered goods — the Proforma Invoice confirms the agreed price and specifications and serves as the basis for the deposit payment.
A Proforma Invoice is needed in Malaysian government procurement when a supplier submits a price quotation in response to a Government Request for Quotation (RFQ), with the Proforma Invoice format satisfying the procurement officer's requirement for a formal price offer before a Purchase Order is issued.
A Proforma Invoice is used when a Malaysian business applies for trade finance or export credit insurance from an insurer such as Exim Bank Malaysia (Export-Import Bank of Malaysia) or Labuan IBFC, where the Proforma Invoice establishes the value of the shipment to be insured or financed.
What to Include in Your Proforma Invoice (Malaysia)
A Malaysia Proforma Invoice must include the following essential fields.
Proforma Invoice Label: Clearly label the document 'PROFORMA INVOICE' to distinguish it from a commercial invoice or tax invoice. This prevents the buyer from treating it as a demand for payment.
Document Number and Date: Assign a unique proforma invoice number and state the issue date. This allows tracking against a subsequent purchase order or final commercial invoice.
Seller Details: Full legal name, SSM registration number, registered address, telephone, email, and bank account details for advance payment. Include SST registration number if the seller is SST-registered under the Service Tax Act 2018 (Act 807).
Buyer Details: Full legal name, SSM registration number, delivery address, and contact details.
Goods or Services Description: Itemise each line with HS Code (Harmonised System code under the Customs Act 1967, Act 235), description, quantity, unit of measure, unit price in RM (or agreed foreign currency), and line total.
Delivery Terms (Incoterms 2020): State the Incoterms trade term — EXW, FOB, CIF, DAP, etc. — published by the International Chamber of Commerce (ICC). This determines who bears freight and insurance costs and risk of loss.
Validity Period: State how long the proforma invoice price is valid — typically 7 to 30 days. After expiry, a revised Proforma Invoice may be issued.
Payment Terms: State the proposed payment terms — advance payment percentage, LC at sight, or open account — and the expected delivery timeline.
Total Amount: Show the total in RM and, if applicable, in the agreed foreign currency with the exchange rate used.
Additional compliance elements for a Proforma Invoice (Malaysia) used in Malaysia include: Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Proforma Invoice (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/business/corporate/proforma-invoice-malaysia
"Proforma Invoice (Malaysia) (Malaysia)." Forms Legal, 2026, https://forms-legal.com/malaysia/business/corporate/proforma-invoice-malaysia.
@misc{formslegal-proforma-invoice-malaysia,
author = {{Forms Legal}},
title = {Proforma Invoice (Malaysia) (Malaysia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/business/corporate/proforma-invoice-malaysia}},
note = {Free legal document template. Based on Companies Act 2016 (Act 777)}
}Also available for these jurisdictions:
Frequently Asked Questions
A Proforma Invoice in Malaysia is generally not legally binding as a demand for payment — it is a preliminary document that constitutes an offer to sell on specified terms. However, once the buyer formally accepts the Proforma Invoice (by signing, returning an accepted copy, issuing a Purchase Order referencing it, or paying a deposit based on it), the accepted Proforma Invoice may constitute a binding contract under the Contracts Act 1950 (Act 136) if all essential elements of a contract are present: offer, acceptance, consideration, capacity, and intention to create legal relations. A Proforma Invoice that is labelled 'subject to confirmation' or 'indicative only' is less likely to be treated as binding. In commercial disputes, Malaysian courts have considered the totality of communications between the parties to determine whether a Proforma Invoice formed part of a binding agreement.
A Proforma Invoice and a Commercial Invoice serve different functions in Malaysian trade. A Proforma Invoice is issued before the sale is confirmed — it is a preliminary quote or offer setting out proposed terms, used to obtain buyer approval, apply for a Letter of Credit, or meet customs pre-clearance requirements. A Proforma Invoice does not create an obligation to pay. A Commercial Invoice is issued after the goods have been shipped or services delivered — it is a formal demand for payment and constitutes the seller's accounting record of a completed transaction. Under LHDN's e-Invoice mandate implemented under the Income Tax Act 1967 (Act 53), only the final Commercial Invoice (not the Proforma Invoice) is required to be submitted to LHDN's MyInvois Portal for validation. For customs purposes under the Customs Act 1967 (Act 235), if both documents exist, the Commercial Invoice takes precedence over the Proforma Invoice for duty assessment.
A Proforma Invoice may be accepted by the Royal Malaysian Customs Department (RMCD) for provisional customs clearance in Malaysia when the final Commercial Invoice is not yet available — for example, on a consignment basis or when goods arrive before the seller's invoice is generated. The RMCD requires a document showing the customs value of goods (the transaction value under Section 2 of the Customs Act 1967, Act 235) to compute import duty, excise duty, and SST. If only a Proforma Invoice is available, RMCD may release the goods provisionally and require the final Commercial Invoice to be submitted for final duty assessment within a specified period. For permanent customs clearance, the final Commercial Invoice is required. Proforma Invoices are also used by the importer's customs agent in Malaysia to prepare the Customs Import Declaration (K1 form) for goods subject to import duties under the Customs Duties Order.
Yes, a Proforma Invoice is the standard document used by Malaysian importers to apply for a Letter of Credit (LC) from a licensed bank. The Proforma Invoice provides the bank with the essential information required to structure the LC: description of goods, quantity, unit price, total value, currency, Incoterms delivery terms, shipping port, and destination. The bank uses the Proforma Invoice to prepare the LC application and to set the LC amount and expiry date. Under the Uniform Customs and Practice for Documentary Credits (UCP 600) — the international standard governing LCs — the Proforma Invoice is not a document required under the LC itself (the LC will require a Commercial Invoice, Bill of Lading, and other specified documents). The Proforma Invoice is purely a pre-LC application document. Malaysian banks including Maybank, CIMB Bank, and Public Bank have standard LC application forms that require attachment of the Proforma Invoice.
A Proforma Invoice (Malaysia) does not legally require a lawyer in Malaysia, and individuals and businesses may draft and execute the document independently. The Companies Act 2016 (Act 777) does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified Malaysia lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Federal Court of Malaysia has jurisdiction over disputes arising from this type of document, and Companies Commission of Malaysia (SSM) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
Found an error? Let us knowRelated Documents
You may also find these documents useful:
Invoice Template (Malaysia)
A standard Invoice Template for Malaysia covering the mandatory fields required for a valid tax invoice under the Income Tax Act 1967 and e-Invoicing requirements from the Inland Revenue Board of Malaysia (LHDN). Includes supplier and buyer details, SST registration, itemised goods or services, and payment terms.
Credit Note (Malaysia)
A Credit Note for Malaysia issued by a seller to a buyer to reduce the amount owed under a prior invoice — due to returns, price adjustments, or errors — governed by the Income Tax Act 1967 and SST (Sales and Service Tax) regulations. Required for LHDN e-Invoice adjustments and SST input tax credit corrections.
Debit Note (Malaysia)
A Debit Note for Malaysia issued by a seller to a buyer to increase the amount owed under a prior invoice — due to undercharging, additional charges, or price corrections — governed by the Income Tax Act 1967 and SST regulations. Required for LHDN e-Invoice upward adjustments and SST output tax corrections.
Bill of Lading (Malaysia)
A Bill of Lading for Malaysia serving as a receipt for cargo, evidence of the contract of carriage, and document of title for sea freight under the Carriage of Goods by Sea Act 1950, Merchant Shipping Ordinance 1952, and the Hague-Visby Rules. Covers shipper and consignee details, port of loading and discharge, freight payment, and endorsement rights.
Goods Received Note (Malaysia)
A Goods Received Note (GRN) for Malaysia — an internal document confirming that goods ordered have been received, inspected, and accepted — required for three-way matching (PO-Invoice-GRN) under the Income Tax Act 1967 and as evidence of delivery in commercial disputes. Covers supplier details, purchase order reference, items received, and inspection result.