Glossary
Net and gross price – what does it mean?
Definition
Net and gross price: the net price excludes VAT, the gross price includes it; business services are often priced net.
With the 27 percent VAT rate in Hungary, the gross price there is 27 percent higher than the net price.
How it works
A price has two versions. The net price does not yet include VAT; the gross price does. Business services are often priced net, while the amount payable on the invoice is the gross amount.
With the 27 percent VAT rate in Hungary, the gross figure is 27 percent higher than the net figure, so the difference also matters for the budget. With a supplier exempt from VAT, the two figures are the same. When you ask about a price, it is worth asking for both figures and checking which one the provider has stated.
An example from a company
The customer asks how much the monthly fee is. The assistant gives both the net and the gross figure and indicates where it takes them from: the price list and the source are shown next to the answer.
What this means for business owners
Always ask for both figures side by side. If only one of them is mentioned, both the comparison and the budget will be distorted.
If the provider does not indicate it, ask about their VAT status and request a written quote showing both amounts.
If you reclaim VAT, the net price is the actual cost, so it is worth clarifying which figure is being quoted. When comparing, use the same basis for every quote.
How we do it
Prices are stated net. Our services are for businesses only. Prices exclude VAT. EU businesses with a valid VAT number: reverse charge. You will find the prices on the Pricing page, and the assistant also answers from there, together with the source. The Chat AI Starter monthly fee is €14.90 / month excl. VAT, with an allowance of 500 answered questions per month.
We send an email at 75, 90 and 100 percent of the allowance, with no surprise invoices.
What to do now?
Do you have a question about your own website or online store? Request a demo or see pricing.