Explained
It is often used to open a letter of credit, clear an import, or get a purchase approved inside the customer’s own organisation. Because it is not a tax invoice, no input tax is claimed from it and it belongs in no tax return. The real invoice is issued after delivery, with its own sequential number.
Related terms
- InvoiceAn invoice is the document in which a seller asks a buyer for the price of what was delivered, listing the items, their quantities and prices, the tax and the total due.
- QuotationA quotation is the document a seller sends a customer with items, prices and terms before agreement, valid for a stated period.
- Tax invoiceA tax invoice is issued by a VAT-registered seller and shows the value of the goods or services, the VAT on them and the seller’s tax number.