The difference between a quotation vs invoice is timing. A quotation is an offer you send before the work, setting out what you will charge and how long that price stands. An invoice is a request for payment you send after the work is delivered.
They often look almost identical. The difference is timing and what each one commits you to.
Quotation vs invoice, side by side
| Quotation | Invoice | |
|---|---|---|
| Sent | Before the work | After the work |
| Purpose | Offers a price | Requests payment |
| Binding | Once the client accepts it | On issue |
| Numbering | Its own sequence, e.g. QUO-0148 | Its own sequence, e.g. INV-0148 |
| VAT | Shows what VAT will be | Charges VAT |
| Expires | Yes, on the validity date | No |
What changes when the client accepts
An accepted quotation becomes an agreement. You have committed to that price and that scope, and the client has committed to paying it. That is exactly why a written quotation is worth the ten minutes it takes: it fixes what was agreed before anyone can remember it differently.
If the job then grows, the correct move is a second quotation for the additional work, not a larger invoice at the end. An invoice that does not match the accepted quote is the most common cause of a payment dispute.
When you can skip the quotation
- Repeat clients working on agreed rates
- Small jobs priced over the phone and confirmed in writing
- Recurring monthly work already covered by an agreement
For anything where the price is being agreed for the first time, quote first. It costs nothing and it is the document you will want if the conversation goes badly later.
Common questions
Can a client hold me to an expired quotation?
Not once the validity date has passed. That is the point of putting one on. If they accept late, reissue at current prices.
Can I charge VAT on a quotation?
You show what the VAT will be. You only charge it on the tax invoice, and only if you are a registered vendor.
Is a proforma invoice the same as a quotation?
No. A proforma invoice is a preliminary document that looks like an invoice but is not a demand for payment.
Quote to Invoice keeps your quotes and invoices in one place, each with its own numbering. Free to use.
Create a professional quotationDisclaimer: This content is for general information only and does not constitute legal, tax, accounting or financial advice. Always confirm important requirements with SARS, the relevant authority or a qualified professional.
