Invoice vs Quote: What's the Difference? (South Africa)
Short answer
A quote is a price offer you send before work starts. An invoice is a request for payment you send once the work is done. A quote says what you will charge. An invoice says what is owed. Once a client accepts your quote, you invoice against it.
Can an invoice be used as a quote?
Not really. An invoice asks for payment for something already agreed or delivered, so it should not stand in for a quote. If the client needs to see a price before they commit, send a quote.
The two documents carry different details. A quote should have a valid-until date. An invoice should have a unique number and a due date.
Only a business registered for VAT (a VAT vendor) issues tax invoices, within 21 days of the supply (see VAT Act section 20(1)). Above R5 000, including VAT, a full tax invoice is needed (see section 20(4)). At R5 000 or less, including VAT, an abridged tax invoice will do (see section 20(5)). At R50 or less, paid in money, you don’t have to issue a tax invoice, but you must give your client a document SARS accepts (see section 20(6)). Our invoice template gives you a layout with the usual fields.
Does a quotation include VAT?
If you are VAT-registered, state clearly whether the quoted price includes or excludes VAT, so the client is not surprised by the invoice. Show both amounts.
Say the same thing on the quote and on the invoice that follows. According to VAT Act section 20(4), a full tax invoice must carry your business name, address and VAT registration number, an invoice number of its own and the date, and a description of the goods or services. If the quote already shows VAT correctly, the invoice is easy to build from it.
To split a price into the amount before VAT and the VAT itself, use the VAT calculator.
What is an example of a quote?
A quote lists who, what, how much, and for how long the price holds. A good one includes:
- your business details
- the client’s name
- a quote number
- the date
- a valid-until date
- the itemised work and prices
- the VAT amount
- the total
- the deposit, if you ask for one
- how the client accepts
The details you show for VAT here should match the tax invoice you send later (see the VAT Act section 20(4) list above). The worked example below shows a full quote. You can build your own with the free quote maker.
Worked example: one job from quote to invoice
This is an illustration only (example). Sipho Dlamini runs Dlamini Plumbing in Pretoria and is VAT-registered. A client, Nomvula Khumalo in Centurion, asks him to replace a geyser.
Quote Q-0042, dated 3 March:
- Geyser and labour: R6 000 excl. VAT
- VAT at 15%: R900
- Total: R6 900 incl. VAT
- Valid for 14 days
- Deposit of 50%: R3 450, due on acceptance
Nomvula accepts and pays the deposit. On the day, Sipho finds a corroded pipe. She approves an extra R500 excl. VAT in writing.
Invoice INV-0042, dated 10 March:
| Line | Amount |
|---|---|
| Original work (excl. VAT) | R6 000 |
| Extra pipe work, approved in writing (excl. VAT) | R500 |
| Total excl. VAT | R6 500 |
| VAT at 15% | R975 |
| Total incl. VAT | R7 475 |
| Less deposit paid | R3 450 |
| Due within 7 days | R4 025 |
The quote stays as the record of the first price. The extra work appears only on the invoice, backed by Nomvula’s written approval.
How Kwalify helps: Once a quote is accepted, Kwalify sends a payment link on WhatsApp, and the money goes through your own Paystack, Yoco or PayFast account. Kwalify sends reminders until every detail and document is in. It can also get a signed acceptance with a standard electronic signature, using a one-time code and an audit trail of who signed and when. Join the waitlist
What payment terms should an invoice show?
Put a due date and payment terms on every invoice, for example 7 or 30 days. Add your banking details or a payment link so the client can pay at once.
The invoice generator gives you a layout to work from.
Quote vs invoice: comparison table
Here is the invoice vs quote comparison in one place. Copy it or print it.
| Feature | Quote | Invoice |
|---|---|---|
| When you send it | Before work starts | After the work is done |
| Purpose | Offer a price | Ask for payment |
| Amount | Estimate or fixed price | Final amount owed |
| Key details | Validity date, scope, VAT shown | Invoice number, due date, banking details or payment link, VAT number if registered (VAT Act s20(4)(b)) |
| What the client does | Accepts or negotiates | Pays |
| Number prefix tip | Q-0001 | INV-0001 |
Before you send a quote, tick off:
- Valid-until date
- VAT stated (excl. and incl.)
- Scope of work
- Deposit
- How to accept
FAQ
Is a quote the same as an invoice?
No. They carry different details, such as a validity date on a quote and a due date on an invoice.
Does a quote come before an invoice?
Yes. You send the quote first, and once the client accepts it you invoice against it. Keep the quote number on the invoice so both documents match.
Can the price change after a quote is accepted?
Agree any change with the client in writing. Put any extra work in writing, as in the example above, and show it on the invoice. Check with an attorney about when a quoted price can change.
What is a pro forma invoice?
A pro forma invoice is not a tax invoice. Your client can’t use it to claim VAT: that needs the tax invoice you issue once you’ve made the supply (see section 20(1) and section 16(2)(a)).