Invoicing explained
Gross amount vs Net amount
On an invoice, the net amount is the price before tax; the gross amount is the total after tax is added. Net is what you charge for the work; gross is what the client actually pays.
What is gross amount?
The gross amount is the final total including tax (such as VAT or sales tax) and after any discount. It's the figure the client pays.
What is net amount?
The net amount is the value of the goods or services before tax. Your subtotal is the sum of the net line amounts; tax is added on top to reach the gross total.
Gross amount vs Net amount: the key differences
Here's how gross amount and net amount differ at a glance:
- Tax — net excludes tax; gross includes it.
- On the invoice — net amounts sum to the subtotal; gross is the total due.
- What the client pays — the gross amount.
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Frequently asked questions
What is the difference between gross amount and net amount?
On an invoice, the net amount is the price before tax; the gross amount is the total after tax is added. Net is what you charge for the work; gross is what the client actually pays.
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