Definition
The gross amount is the total an invoice asks the buyer to pay, including VAT, sales tax, or any other indirect tax. It is the net amount plus the tax amount. On a payable invoice, the gross is what appears on the totals line and what the buyer should remit.
Whether you quote and invoice in gross or net depends on the buyer. Consumer-facing prices are usually quoted gross because the customer cares about the all-in number they will pay. B2B prices are usually quoted net because the buyer's tax registration affects the real cost to them.
Why it matters
Confusing net and gross is one of the most expensive mistakes a small business can make. Quoting a £2,400 day rate and meaning gross while the buyer assumes net wipes out the tax portion of your revenue. Always specify which one you are quoting in writing — preferably both.
Where this appears in your tools
The Invoice Generator shows the gross total prominently in the totals block so there is no ambiguity about what the buyer is being asked to pay. The Profit Leak Analyzer treats revenue as net (i.e. excludes the tax portion) so margin numbers reflect real earnings, not money you owe to a tax authority.
Example
An invoice with a net subtotal of £2,400 and 20 percent VAT (£480) has a gross total of £2,880. If the buyer pays £2,880 by bank transfer, the seller's books recognise £2,400 of revenue and a £480 VAT liability — not £2,880 of revenue.
Common confusion
'Gross' on an invoice means 'including tax'. 'Gross' on a profit and loss statement (gross profit, gross margin) means 'after cost of goods'. The same word is used in two very different ways and the right interpretation depends on context.