Subtotal
The sum of the line amounts, before any discount, tax or shipping is applied.
In the example it is $1,200.00. Our home page generator prints it as "Subtotal"; the VAT invoice generator prints "Subtotal (Net)".
Invoice Glossary: What the Words on an Invoice Mean
The amounts, dates and abbreviations printed on an invoice, each defined from a dictionary, a tax authority or EU law, and shown in place on one example invoice.
How to read an invoice
This is the filled-in example from our how to create an invoice guide, with the same fictional business, customer and figures. Each numbered marker links to the entry that explains it.
Rivera Design Studio LLC
INVOICE
From (seller) Rivera Design Studio LLC
100 Example Road, Anytown
[email protected]
100 Example Road, Anytown
[email protected]
Bill to (customer) Harbor Street Bakery Inc.
Attn: Accounts Payable
[email protected]
Attn: Accounts Payable
[email protected]
| Description | QTY | UNIT PRICE | AMOUNT |
|---|---|---|---|
| Logo design and brand guide (September 8-26, 2026) | 12 hours | $85.00 | $1,020.00 |
| Social media banner set (3 sizes) | 3 items | $60.00 | $180.00 |
| Subtotal 4 | $1,200.00 | ||
| Returning-client discount (5%) | −$60.00 | ||
| Tax 5 | $0.00 | ||
| TOTAL DUE 6 | $1,140.00 | ||
Payment terms 7: Net 30, due October 31, 2026 (30 days after the October 1 issue date).
How to pay: bank transfer to Rivera Design Studio LLC, [bank name, account and routing numbers]. Please quote INV-2026-0042 as the payment reference.
- Invoice number: the seller's own reference for this invoice. See the invoice numbering guide.
- Invoice date: October 1, 2026.
- Due date (also called the maturity date): October 31, 2026.
- Subtotal $1,020.00 + $180.00 = $1,200.00; after the 5% discount the net amount is $1,140.00.
- Tax: none charged in this illustration.
- Amount due: $1,140.00. Nothing has been paid yet, so it equals the total.
- Payment terms: "Net 30" means payment is due 30 days after the invoice date. See invoice payment terms.
Amounts
Net amount
On an invoice, usually the amount before tax is added; in general use, what is left after deductions. "Net" is used in three different ways around invoices:
- Before tax. On a VAT invoice the net amount is the value excluding VAT. HMRC's VAT
Notice 700 (para 16.3.1) lists, among the details to show on any VAT invoice:
the gross total amount payable, excluding VAT — this can be expressed in any currency
. EU VAT law requiresthe taxable amount per rate or exemption, the unit price exclusive of VAT and any discounts or rebates if they are not included in the unit price
(Directive 2006/112/EC, Art. 226(8)). Our VAT invoice generator prints a "Net Amount" column for each line (quantity × unit price, before VAT). - After deductions. In general use, net means what remains. The Cambridge Dictionary
defines it as
left when there is nothing else to be taken away
. On an invoice that can be the amount left after a discount, a credit note or an amount withheld: in the example, $1,200.00 less the $60.00 discount leaves $1,140.00. - "Net 30" is a payment term, not an amount. It sets when payment is due: see the Net 30 due date calculator and invoice payment terms.
Sources: HMRC VAT Notice 700; Directive 2006/112/EC (EUR-Lex consolidated text); Cambridge Dictionary, "net". Checked September 25, 2026.
Tax (sales tax, VAT, GST)
The tax the seller adds to the invoice when it is registered to charge it, worked out from a rate.
A seller who is not registered to charge tax leaves this line at 0 or out. Our generators work out tax on the amount after any discount. What a tax invoice must show varies by country: see the VAT & GST invoicing guide, and the VAT calculator to convert an amount between net and gross.
Total
The full amount of the invoice: subtotal − discount + tax + shipping.
Our home page generator prints this line as "Total"; our blank invoice templates print "TOTAL DUE". To work the figure out step by step, use the invoice calculator.
Amount due
What the customer still has to pay: the total minus anything already paid, such as a deposit.
Also printed as balance due, amount payable or amount to pay. When nothing has been paid yet, the amount due equals the total. When a deposit is entered, seven of our generators print "Deposit Paid" and then "Balance Due": the commercial, consulting, contractor, freelance, multi-currency, photographer and VAT invoice generators. The home page generator has no deposit line and prints "Total".
To write the amount due in words, for example on a cheque, use the amount to words converter.
Dates
Invoice date
The date the invoice is issued.
EU VAT law lists it first among the details on an invoice: the date of issue
(Directive
2006/112/EC, Art. 226(1)). In the example, the Net 30 due date is counted from it.
Due date
The date by which the customer should pay.
It is often written as a term, such as "Net 30", and as a date. Where no date is agreed, the law may set a
default. In the UK, GOV.UK says: Unless you agree a payment date, the customer must pay you within 30
days of getting your invoice or the goods or service.
To turn a term into a date, use the
payment due date calculator.
Source: GOV.UK, Invoicing and taking payment from customers: payment obligations. Checked September 25, 2026.
Maturity date
The Cambridge Dictionary defines a maturity date as the date on which an investment or insurance
product becomes ready to be paid
.
On an invoice, "maturity" or "maturity date" is used for the due date: the date by which the invoice should be paid.
Source: Cambridge Dictionary, "maturity date". Checked September 25, 2026.
Abbreviations
E&OE
E&OE stands for errors and omissions excepted. The Cambridge Dictionary defines it as
an abbreviation for Errors and Omissions Excepted: used to say that a price list, product description,
or other document may contain mistakes or may not include some details
.
Source: Cambridge Dictionary, "E&OE". Checked September 25, 2026.
PO and payment codes
- PO (purchase order): the buyer's order number, often quoted on the invoice. See the B2B invoicing guide.
- Net 30: Net 30 due date calculator.
- EOM: EOM payment terms.
- COD, CIA, PIA and other codes: invoice payment terms.
Documents and parties
- Types of invoice: types of invoices.
- Credit memo / credit note: guide to credit memos.
- Proforma invoice: what is a proforma invoice.
- Receipt: invoice vs receipt.
- Bill to / ship to: B2B invoicing guide.
- Invoice number: invoice numbering guide.
Frequently asked questions
What does E&OE mean on an invoice?
E&OE stands for "errors and omissions excepted". The Cambridge Dictionary defines it as an abbreviation "used to say that a price list, product description, or other document may contain mistakes or may not include some details".
What is the net amount on an invoice?
Usually the amount before tax. HMRC's VAT Notice 700 (para 16.3.1) lists "the gross total amount payable, excluding VAT" among the details on a VAT invoice, and EU VAT law (Directive 2006/112/EC, Art. 226(8)) requires "the taxable amount per rate or exemption". In general use, "net" also means what is left after deductions, such as discounts or credits. "Net 30" is different: it is a payment term, not an amount.
What is the maturity date of an invoice?
"Maturity date" is a finance term: the Cambridge Dictionary defines it as "the date on which an investment or insurance product becomes ready to be paid". On invoices it is used for the due date, the date by which the customer should pay.
What is the difference between amount due and total?
The total is the full amount of the invoice: subtotal − discount + tax + shipping. The amount due, or balance due, is what the customer still has to pay: the total minus anything already paid, such as a deposit. When nothing has been paid, the two are the same.
These definitions explain common invoice wording. They are not legal, accounting or tax advice; what an invoice must show depends on where you and your customer are.