Quote vs Invoice: What's the Difference?
A quote is an offer: here is what we will supply and what it will cost, if you accept. An invoice is a demand for payment: here is what we supplied, and here is what you now owe. A quote comes before the work and creates no debt; an invoice comes after it and does.
Quote vs Invoice at a Glance
| Quote | Invoice | |
|---|---|---|
| When it is issued | Before the work or supply | After the work or supply |
| What it does | Offers a price the customer can accept or decline | Requests payment of an amount now owed |
| Creates a debt? | No | Yes |
| Valid for GST? | No | Yes — it carries taxable supply information |
| Can the figures change? | Yes, until accepted | Only by issuing a credit note |
| Carries payment terms? | Often, as an indication | Yes — the due date is binding |
| Typically expires? | Yes, commonly 14 or 30 days | No — it falls due instead |
A Quote Is Not an Estimate
In New Zealand trade work this distinction carries real weight. A quote is a fixed price: accept it and that is what the customer pays, barring an agreed variation. An estimate is an informed guess, and the final figure can move. Describing a fixed price as an estimate, or an estimate as a quote, is where a surprising number of disputes start.
Worked example. A packaging supplier quotes $12,400 for a print run. The customer accepts, the run is produced, and the supplier invoices $12,400 on Net 30 terms. If the customer later requests a different stock, that is a variation — quoted and accepted separately — not a reason to change the original invoice.
Where a Pro Forma Invoice Fits
Between the two sits a third document. A pro forma invoice is issued once the sale is agreed in principle but before supply, usually so the buyer can raise a purchase order or pay a deposit. It looks like an invoice but creates no debt and has no GST standing. See what a pro forma invoice is and whether it needs GST.
The sequence for a typical made-to-order NZ trade job therefore runs: quote → acceptance → pro forma invoice for the deposit (if any) → supply → invoice → payment on terms.
What Belongs on Each
A quote should carry a clear scope, the price, whether GST is included, how long the price holds, and the payment terms that will apply if accepted. Putting the terms on the quote rather than discovering them on the invoice is the single cheapest way to avoid a payment argument later — and it is also the only point at which a right to charge interest on an overdue invoice can be established. See whether you can charge interest on an overdue invoice in NZ.
An invoice must carry full taxable supply information: your name and GST number, the date, a description of what was supplied, the amounts, and the buyer's details on supplies over $1,000. Full detail in do you still need a tax invoice in NZ?, and the rest of the cluster in the invoicing guide.
Frequently Asked Questions
Can a quote be used as an invoice?
No. A quote does not create a debt and is not valid taxable supply information, so your customer cannot pay against it for accounting purposes or claim the GST. Issue an invoice once the work is done.
Is a quote legally binding in New Zealand?
Once the customer accepts it, a quote generally forms a binding contract at that fixed price. That is the practical difference from an estimate, which signals the final figure may move.
Do I have to send a quote before an invoice?
No. For repeat orders on an existing trade account most suppliers invoice directly. A quote is worth doing where the scope or price is not already settled between you.
How long should a quote stay valid?
There is no legal period, but 14 or 30 days is the common NZ convention. Stating an expiry protects you if your input costs move before the customer accepts.
Can I change an invoice after sending it?
Not by editing it. If the amount was wrong you issue a credit note and, if needed, a corrected invoice — that keeps your GST records and the customer's matching.
The Terms on the Quote Decide When You Get Paid
PaidTerms lets you offer eligible customers an instalment option from the point you invoice, while you are paid upfront.
Read next: pro forma invoices and GST, or the guide to NZ payment terms.
