Gross Amount

Definition

The gross amount is the total price of a purchase including VAT or tax.

Gross is the tax-inclusive figure a customer actually pays, while net is the price before tax. To find the net from a gross amount, divide the gross by one plus the tax rate as a decimal; the difference between gross and net is the tax. On VAT receipts, both figures usually appear alongside the VAT line so the customer can see exactly how the total breaks down. Distinguishing gross from net is essential for accurate bookkeeping and VAT reclaim.