Quote, payment request, deposit invoice, final invoice: what's the difference, and when do you need which?

Over the course of a job, typically four documents get produced, and a good number of tradespeople aren't entirely sure what each one means. But the difference isn't just naming: one triggers a VAT payment and the other doesn't, one must be reported to the Hungarian tax authority (NAV) and the other doesn't. Let's go through them in order.

The four documents in one sentence each

Quote: fixing the deal

A quote isn't an accounting document, it's a legal statement. You describe what, for how much and on what terms you're taking on the job; if the client accepts it, a contract is formed under Hungarian civil law. It carries no VAT, doesn't need to be booked, and doesn't need to be reported. There's no prescribed format, but there is content worth following: that's covered in How do I write a quote?, and you'll find a filled-in example on the quote template page.

Something to watch for: a quote isn't a "pro forma invoice". The two are often confused, but a pro forma is the international name for a payment request, in other words a request for payment, not an offer.

Payment request: asking for payment, without a document

The client has accepted the quote, and you've asked for a 30% deposit. How do you request it? With a payment request. A payment request (also known as a pro forma invoice or payment notice) is a request for payment showing the amount, bank account number, payment deadline, and what it relates to.

The key reason to use one: a payment request isn't an accounting document, it doesn't trigger a VAT liability, and it doesn't need to be submitted to the NAV Online Invoice system. If the client ultimately doesn't pay, there's nothing for you to do: no cancellation needed, since there was no document. If they do pay, the next step follows.

What should it say? Clearly, "Payment request", never "invoice". It's worth noting that it doesn't entitle the recipient to reclaim VAT, and that the invoice will be issued once payment is received.

Deposit invoice: the money has arrived, now you need the document

When the deposit lands in your account, Section 59 of the Hungarian VAT Act requires you to issue an invoice for it, and this creates a VAT liability: the deposit counts as a gross amount, meaning it includes VAT. This is the deposit invoice. So a payment request doesn't replace the deposit invoice, it just precedes it.

Two important details:

• A deposit is an amount received before completion, under the contract, counted towards the price. If the client transfers money early on their own initiative, without being asked, this may be treated differently for tax purposes; check with your accountant in that case.
• As a VAT-exempt small business, you have no VAT to charge, but the obligation to issue a document still applies: a deposit still requires an invoice in that case too.

Final invoice: settling up at the end of the job

After completion, you issue the final invoice, listing all items, with the deposit deducted as a negative line. The difference is the amount still due. The final invoice is subject to the mandatory content rules for invoices, and must be submitted to the NAV Online Invoice system, just like the deposit invoice.

The correct order for a construction job

1. Survey → quote. Itemised, with validity and terms. (Construction template)
2. Acceptance. The client signs or accepts online. For larger jobs, also a written construction contract.
3. Payment request for the deposit. For the percentage set out in the quote, with a payment deadline.
4. Deposit arrives → deposit invoice. Dated on the day it's received.
5. Completion → final invoice. With the deposit deducted.

If the client doesn't pay the payment request, steps 4 to 5 simply don't happen, with no administrative consequences. This is the point where many tradespeople unnecessarily issue a deposit invoice before payment, and then have to cancel it.

Common mistakes

Writing "invoice" on a payment request. This turns it into an accounting document, with VAT and reporting obligations. The payment request should always say "Payment request".

A deposit invoice before the money has arrived. The deposit invoice's completion date is the day the money arrives; if you issue it in advance, you'll be declaring VAT with the wrong date.

The quote number doesn't appear on the payment request. Reference it ("30% deposit for quote no. AJ-2026-0042"), so both the client and your accountant know what it relates to.

A final invoice without deducting the deposit. This means you're invoicing the same amount twice.

What does Ajánlatra handle, and what doesn't it?

Ajánlatra is built for the first step: you create the itemised, branded quote by voice, the client accepts it online, and you can see when they opened it. You issue the payment request, deposit invoice and final invoice in your invoicing software (such as Billingo or Számlázz.hu), simply copying over the items from the accepted quote. That way, every figure you'll later need for the invoice is already there on the quote.

3 quotes a month free, try it on the homepage without registering.

This article is general information, not tax advice. Discuss your own situation with your accountant.