Document background
The Proforma Invoice Form is a critical commercial document used primarily in business transactions where a formal quotation is required before the actual sale. Under Saudi Arabian jurisdiction, this document must comply with specific requirements set by the Zakat, Tax and Customs Authority (ZATCA) and Saudi commercial law. It serves multiple purposes: as a quotation, a preliminary invoice for customs clearance, a document for opening letters of credit, and a basis for formal purchase orders. The Proforma Invoice Form includes essential details such as seller and buyer information, detailed description of goods or services, pricing including VAT at 15%, payment terms, and delivery conditions. It's particularly crucial in international trade involving Saudi Arabian entities, where it facilitates customs procedures and helps establish clear commercial terms between parties.
