Concept Definition
What is the gross amount on an invoice?
The gross amount is the total invoice value including VAT. It is the amount the buyer owes and the amount that should appear as the payable total on the invoice. In UBL, PayableAmount under LegalMonetaryTotal carries the gross payable. For zero-rated and exempt invoices, gross and net amounts are equal.
How is the gross amount expressed in UBL?
UBL 2.1 carries monetary totals in the LegalMonetaryTotal element. Key sub-elements include:
- LineExtensionAmount: Sum of all line item net amounts.
- TaxExclusiveAmount: Total net amount at invoice level (after discounts/charges).
- TaxInclusiveAmount: Total including VAT.
- PayableAmount: Final amount due (TaxInclusiveAmount minus prepaid amounts).
Frequently Asked Questions
- Can gross amount differ from tax-inclusive amount?
- Yes. If a prepayment has been made, the PayableAmount (gross amount due) is the TaxInclusiveAmount minus the prepaid amount. The invoice must show both the full tax-inclusive amount and the reduced payable amount after prepayment.
- Which amount is used for payment?
- The PayableAmount (net of any prepayments, rounded to the invoiced currency) is the amount the buyer transfers or pays. It is the final figure shown at the bottom of a commercial invoice.