Table of Contents
- 1 Is a proforma invoice legally binding in China?
- 2 Will customs accept a proforma invoice?
- 3 How do I pay an invoice from China?
- 4 Is a proforma invoice the same as an invoice?
- 5 What is the best way to pay a Chinese supplier?
- 6 How do you pay a company in China?
- 7 How do I place an order with proforma?
- 8 Should I include VAT in my pro forma invoice?
Is a proforma invoice legally binding in China?
A Proforma invoice is an abridged or estimated invoice sent by a seller to a buyer in advance of a shipment or delivery of goods. It is merely a document with objective information on the goods and the delivery, in Chinese law it does not contain an enforceable legal obligation to either party.
Will customs accept a proforma invoice?
Proforma Invoices are usually used for customs purposes only, often where unsold goods are being shipped. Commercial Invoices are usually used where sold goods are being shipped.
How do I pay an invoice from China?
Here are five common ways to pay your suppliers in Mainland China:
- Make an international wire transfer from your bank.
- Set up a business account in Hong Kong and send funds as a local transfer.
- Use Alibaba Trade Assurance.
- Remit the payment through a specialised remittance company.
Is proforma invoice a legal document?
It is a legally binding agreement and is recorded in accounts payable. Whereas the proforma invoice is like a quotation, is not legally binding and is sent before the sale and details have been confirmed. A sales invoice can also serve as a tax invoice, since it includes VAT/GST and other taxes.
What is the difference between a commercial invoice and a proforma invoice?
A pro forma invoice provides an estimate for the final amount of an order. A commercial invoice shows the final amount that should be paid. Pro forma invoices are used in importing and exporting to declare the value of goods for customs. Commercial invoices are used in accounting, to pay bills.
Is a proforma invoice the same as an invoice?
Proforma applies to invoices that are not yet completed which means that the invoices do not have an invoice number that is needed for every legal invoice. Unlike an invoice, a proforma invoice is an estimate or a quote that outlines the goods and services that a seller commits to selling.
What is the best way to pay a Chinese supplier?
9 ways to pay your suppliers in China: A risk, acceptance and cost comparison
- Wise.
- International wire transfer / Telegraphic Transfer (T/T)
- Escrow.
- Letters of Credit (LCs)
- Sourcing agencies.
- PayPal.
- Western Union.
- International credit or debit cards.
How do you pay a company in China?
What is the best way to pay my Chinese supplier?
- International Wire Transfers. This is an umbrella term that involves the electronic transfer of funds from one place to another using a network of banks and transfer agencies across the world.
- Escrow.
- Letters of credit.
- PayPal.
- Western Union.
- Sourcing Agents.
Can I use pro forma invoices in China?
No, you can’t. A pro forma invoice is primarily used to clarify or establish the terms of a particular order and cannot be used for payment or accounting purposes. However, there are several other payment methods that Chinese suppliers accept such as PayPal, wire transfer, and telegraphic transfers among others.
What is a proforma invoice?
The Proforma Invoice is a document demonstrating the supplier’s commitment to sell products for a certain price, under the terms specified.
How do I place an order with proforma?
Place your order with the vendor, shipper or exporter and identify shipping terms that will be used. Once you have selected your supplier, request a P/I (Proforma Invoice or Quote Sheet) for your prospective purchases to include the harmonized system number, description & value per item.
Should I include VAT in my pro forma invoice?
Including VAT in a pro forma invoice is not mandatory. However, including it in your pro forma invoice attracts other benefits such as; Creating awareness about the total amount to pay which in turn prevents any form of misunderstanding about the costs later on.