Proforma Invoice (Philippines)
PROFORMA INVOICE
For advance quotation purposes only — Not a BIR Official Receipt
Proforma Invoice No.: [Invoice Number] Date: [Invoice Date]
SELLER / EXPORTER:
[Seller Name]
[Seller Address]
TIN: [Seller TIN]
BUYER / IMPORTER:
[Buyer Name]
[Buyer Address]
GOODS DESCRIPTION
[Goods Description]
TOTAL PROFORMA VALUE: [Total Value] [Currency]
TRADE TERMS
Delivery Terms (Incoterms 2020): [Incoterms]
Port of Loading: [Port of Loading]
Port of Destination: [Port of Destination]
Payment Terms: [Payment Terms]
Validity: [Validity Period]
DISCLAIMER: This Proforma Invoice is issued for quotation, ordering, and Letter of Credit application purposes only. The final BIR-registered Commercial Invoice will be issued upon completion of sale and shipment. This document does not create a VAT obligation or constitute proof of income for BIR reporting purposes.
[Seller Name]
Authorized Signatory
Seller / Authorized Signatory
________________
Signature
What Is a Proforma Invoice (Philippines)?
A Proforma Invoice in the Philippines sets out the charges, taxes and totals for the transaction it documents, for payment and record-keeping.
In Philippine trade law, proforma invoices are used primarily in international trade governed by the Bureau of Customs (BOC) under Republic Act No. 10863 (Customs Modernization and Tariff Act, CMTA, 2016). The BOC under BOC Customs Administrative Order No. 02-2001 recognizes proforma invoices as supporting documents for import entry declarations under CAO No. 01-2019 when the final commercial invoice is not yet available at the time of filing the import entry. The proforma invoice is used by importers to estimate duties, taxes, and other charges under the CMTA and the ASEAN Harmonized Tariff Nomenclature (AHTN).
Philippine exporters and importers use proforma invoices as the basis for applying for Letters of Credit (LC) from BSP-supervised banks under the Uniform Customs and Practice for Documentary Credits (UCP 600) issued by the International Chamber of Commerce. The proforma invoice details — description of goods, quantity, unit price in the agreed currency, delivery terms (Incoterms 2020), and total value — form the basis of the LC application and the LC's terms and conditions.
A Proforma Invoice is not a BIR-registered official receipt or commercial invoice under Revenue Regulations No. 18-2012 — it does not create an income tax or VAT liability for the seller because no sale has been completed. The actual BIR-registered commercial invoice or official receipt is issued only upon completion of the sale or delivery of goods. Under Section 237 of the National Internal Revenue Code (NIRC, RA 8424), the tax obligation arises upon delivery, not upon issuance of the proforma invoice.
The legal framework governing the Proforma Invoice (Philippines) in Philippines draws on several key statutes and regulatory bodies. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Parties executing a Proforma Invoice (Philippines) in Philippines should confirm the document reflects current law, including any amendments enacted since the original drafting date. The National Internal Revenue Code (RA 8424) sets the foundational requirements.
When Do You Need a Proforma Invoice (Philippines)?
A Proforma Invoice in the Philippines is needed in trade and commercial transactions where a preliminary price quotation or advance invoice is required before the actual sale is completed.
A Proforma Invoice is required for import transactions processed through the Bureau of Customs (BOC) under Republic Act No. 10863 (CMTA) when the buyer needs to apply for an import permit, obtain a Bureau of Plant Industry (BPI) phytosanitary certificate, or secure an import clearance from the Food and Drug Administration (FDA) before the shipment arrives — the proforma invoice provides the details needed to process the advance clearance.
A Proforma Invoice is needed when a Philippine importer applies to a BSP-supervised bank for a Letter of Credit (LC) to pay a foreign supplier — the bank uses the proforma invoice to establish the LC amount, description of goods, and delivery terms under UCP 600. The LC cannot be opened without the proforma invoice details.
A Proforma Invoice is required for advance payment requests where a Philippine supplier requests partial or full payment from a buyer before manufacturing or shipping the goods — the proforma invoice notifies the buyer of the amount to remit in advance, consistent with the purchase order terms.
A Proforma Invoice is needed for Philippine exporters registering a sale under the Bureau of Customs (BOC) Electronic-to-Mobile (E2M) system for export declarations — the proforma invoice provides the preliminary valuation pending the final commercial invoice.
A Proforma Invoice is required for customs valuation purposes under the WTO Customs Valuation Agreement (CVA) implemented by Section 700 of the CMTA when the final transaction value is not yet settled and the BOC examiner requires an advance document for preliminary assessment.
Parties in Philippines should prepare a Proforma Invoice (Philippines) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Proforma Invoice (Philippines)
A complete Proforma Invoice in the Philippines used in trade transactions must contain the following essential elements.
Seller/Exporter Information: Full legal name, business address, Tax Identification Number (TIN) registered with the BIR, and contact details of the seller. For export transactions, include the Bureau of Customs (BOC) Importer/Exporter Code and the seller's PhilGEPS registration number if the transaction involves a government buyer.
Buyer/Importer Information: Full legal name, address, and importer accreditation number at the Bureau of Customs (BOC) of the buyer. For Letter of Credit applications, the buyer's information must match exactly the LC applicant details submitted to the issuing bank.
Proforma Invoice Number and Date: A unique proforma invoice reference number and date in MM/DD/YYYY format. The proforma invoice number is referenced in the purchase order, the Letter of Credit, and subsequent import/export documentation — consistency in numbering is essential for document tracking.
Goods or Services Description: A detailed description of the goods — HS Code (Harmonized System Code) under the ASEAN Harmonized Tariff Nomenclature (AHTN 2022) applicable under Section 1611 of the CMTA; product name, technical specifications, and grade; quantity and unit of measure; and country of origin. The HS Code determines the applicable tariff rate and whether the goods qualify for preferential ASEAN rates under the ATIGA (ASEAN Trade in Goods Agreement).
Pricing and Totals: Unit price in the agreed currency (Philippine peso PHP ₱ for domestic transactions; USD, EUR, or other for international); quantity; line item subtotal; and total proforma invoice value. State the pricing basis — Incoterms 2020 delivery term (EXW, FOB, CIF, DDP) — which determines which costs are included in the stated price for customs valuation under Section 700 of the CMTA.
Payment Terms: The agreed payment terms — advance payment, open account, Letter of Credit, Documents against Payment (D/P), or Documents against Acceptance (D/A) — and the timeline for payment.
Validity Period: The period for which the proforma invoice's quoted prices are valid — typically 30 to 90 days. Proforma invoices submitted to the BOC or to banks for LC applications beyond the validity period may be rejected.
Customs and Tax Disclaimer: A statement that the proforma invoice is for advance quotation and ordering purposes only and is not a BIR-registered official receipt or commercial invoice — the final BIR-compliant commercial invoice will be issued upon shipment and completion of the sale.
Additional compliance elements for a Proforma Invoice (Philippines) used in Philippines include: Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Forms-legal.com provides this template as a starting point for Philippines-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Proforma Invoice (Philippines) (Philippines) [Legal document template]. Forms Legal. https://forms-legal.com/philippines/financial/invoices/proforma-invoice-philippines
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title = {Proforma Invoice (Philippines) (Philippines)},
year = {2026},
howpublished = {\url{https://forms-legal.com/philippines/financial/invoices/proforma-invoice-philippines}},
note = {Free legal document template. Based on National Internal Revenue Code (RA 8424)}
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Frequently Asked Questions
A Proforma Invoice is not a BIR-registered official receipt or commercial invoice under Philippine tax law and does not satisfy the invoicing requirements of Section 237 of the National Internal Revenue Code (NIRC, RA 8424). A proforma invoice does not create a VAT liability or income tax obligation for the seller because no sale has been completed — the tax obligation arises upon actual delivery of goods or completion of services. The BIR requires a registered Sales Invoice (for goods) or Official Receipt (for services) under BIR Revenue Regulations No. 18-2012 to be issued at the time of sale. A proforma invoice cannot be used by the buyer to claim VAT input tax credits under Section 110 of the NIRC. If a buyer pays in advance based on a proforma invoice, the seller must issue the BIR-registered official receipt upon receipt of the advance payment under Section 113 of the NIRC, and a BIR-registered sales invoice upon delivery of goods. The proforma invoice serves its function as a quotation and advance notification document — the BIR invoice follows as a separate compliance step.
A Proforma Invoice is the standard document used for opening Letters of Credit (LC) in the Philippines through BSP-supervised banks under the Uniform Customs and Practice for Documentary Credits (UCP 600) issued by the International Chamber of Commerce. When a Philippine importer applies to a local bank to issue an LC in favor of a foreign supplier, the bank requires a proforma invoice from the supplier detailing the goods, quantities, unit prices, total value, delivery terms (Incoterms 2020), and shipment schedule. The bank uses this information to draft the LC terms. The proforma invoice amount determines the LC value and the Philippine importer's foreign exchange requirements, which must be reported to the Bangko Sentral ng Pilipinas (BSP) for amounts exceeding USD 50,000 under BSP Circular No. 645 on foreign exchange regulations. After the LC is issued and the goods are shipped, the supplier presents the final commercial invoice (together with the Bill of Lading, packing list, and other LC-required documents) to the presenting bank for payment under the LC.
A Proforma Invoice and a Commercial Invoice differ in legal status, timing, and tax implications in the Philippines. A Proforma Invoice is a preliminary document — a quotation or advance notification — issued before the sale is completed. It does not create a binding payment obligation, is not a BIR-registered document under Revenue Regulations No. 18-2012, and does not trigger VAT or income tax liability. A Commercial Invoice is the final billing document issued upon completion of the sale or delivery of goods — it is legally binding, creates the buyer's obligation to pay, and must be BIR-registered (as a Sales Invoice under the BIR ATP system) for domestic sales. In international trade, commercial invoices are used by the Bureau of Customs (BOC) for import entry declarations under Republic Act No. 10863 (CMTA) as the primary basis for customs valuation under the WTO Customs Valuation Agreement. The Bureau of Customs accepts either the proforma or commercial invoice for advance processing, but requires the commercial invoice at the time of final import entry filing.
A Proforma Invoice used in import transactions does not need to be stamped by the Bureau of Customs (BOC) in the Philippines before submission. The BOC under Republic Act No. 10863 (Customs Modernization and Tariff Act, CMTA) accepts proforma invoices as supporting documents for advance import clearances and import entry declarations filed through the BOC's Electronic-to-Mobile (E2M) customs processing system under Customs Administrative Order No. 01-2019. The BOC examiner reviews the proforma invoice to assess the declared customs value under the WTO Customs Valuation Agreement (Section 700 of the CMTA) and to classify the goods under the ASEAN Harmonized Tariff Nomenclature (AHTN). Once the final commercial invoice is available, the importer substitutes it for the proforma invoice in the import entry. Specific agencies — such as the Food and Drug Administration (FDA), Bureau of Plant Industry (BPI), and Bureau of Animal Industry (BAI) — may require the proforma invoice to be accompanied by their respective import permits before the goods can be cleared through customs.
The choice of Incoterms 2020 (International Commercial Terms, issued by the International Chamber of Commerce) on a Proforma Invoice significantly affects the customs valuation, insurance, and cost allocation for a Philippine importer. The Bureau of Customs (BOC) under Section 700 of the Customs Modernization and Tariff Act (CMTA, RA 10863) uses the transaction value (price actually paid or payable for imported goods when sold for export to the Philippines, adjusted to CIF — Cost, Insurance, and Freight) as the primary basis for customs valuation. For this reason, Philippine importers typically prefer CIF terms — where the seller's price includes cost, insurance, and ocean freight to the Philippine port of entry — as the CIF price corresponds directly to the customs value used for computing import duties and VAT under the CMTA. FOB (Free on Board) terms are also accepted by the BOC, with the importer providing evidence of the separately incurred freight and insurance for the CIF adjustment. Importers should avoid EXW (Ex Works) terms in Proforma Invoices because they require the importer to arrange and document all costs from the seller's factory, complicating the customs valuation process.
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
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