Net (economics)

Net comes from the Italian and means about: pure. In this context, purely is, without a specific, usually unwanted fraction of the total ( gross ). When to purge proportion may be, for example, taxes, fees, costs, volume or weight. If it is weight, the tare is the difference between gross and net.

The relationship between net and gross can be reduced to the following concise formula:

Examples

Taxes and duties

A net price is the price without the possibly still adventitious VAT or Sales Tax:

The net salary is the salary ( pay), remaining after deduction of taxes and social contributions:

Net is thus always the tax- adjusted version, while Gross has yet to be net of tax.

Terms of payment

Stands on an invoice under the payment terms such as " payable within 10 days net ", this means that in paying no discount is allowed. Of course, the gross invoice amount must be paid. Because the granting of a cash discount is a voluntary discount, which is not offered at any mention that such a note is not required and is intended for clarification. To avoid misunderstanding, it should be net waived the word in this context.

Insurance industry

In the insurance industry means

• Gross: before release of liability or damages parts of reinsurance,
• Net: after reinsurance ( ie the remaining with the insurer or the premium share to be borne by him damage component). The latter is also denoted for its own account ( fe R. ).

In addition, is a gross / net -, analogous to the above sales tax before / after insurance tax. Finally, these terms can also refer to the settlement of the insured credited surpluses or premium refunds (gross before, net of withholding ).

Food

In food packaging, the weight or by volume is usually understood as a net nominal quantity. Thus, as used herein means net weight or volume of the product without the weight or volume fraction of the packing.

Transfer rates

The net data rate is the data rate to be transmitted in a data network with the pure payload without overhead ( such as error protection and correction data ). It is also referred to as user data or data throughput of a network and usually stated in Mbit / s. The net data rate can sometimes differ significantly from the gross data rate often for advertising purposes specified (eg WLAN) and are actually transmitted amount of user data per unit of time.