#geordi - tax
crystal vault
Absolutely, just minute.
crystal vault
Since tax is not prorated when a user upgrades and/or adds an additional seat to their subscription - how can we avoid them paying "extra" tax during this flow. An example test customer here: cus_MAevNXBUG0ie1U
Where the user purchases a paid license. Upgrades to a higher tiered plan, and then adds an additional license - they seem to pay "3" seats worth of tax rather than the 2 seats they have at the end of the upgrading flow.
shut smelt
Looking into this! In the meantime, have you read this about proration and tax? https://stripe.com/docs/tax/faq#how-do-you-handle-prorations-and-taxes
crystal vault
Thanks will take a read now, and as a follow up Q:
Even if the tax is not prorated, the tax amount is often slightly higher than expected based on the unit price of the seat. We often see around a few dollars difference at the point of upgrade.
shut smelt
An example test customer here: cus_MAevNXBUG0ie1U
Can you share the exact request ID where you updated the subscription, what you where expecting to see, and what you saw instead?
We often see around a few dollars difference at the point of upgrade.
This could be due to how Stripe handles rounding: https://stripe.com/docs/billing/taxes/tax-rates#rounding
If not, can you share an exact request ID, what you where expecting to see, and what you saw instead?
crystal vault
Here is the event ID for subscription updated: evt_1LSJfkLLAsLlRiDez7IRgwRL
shut smelt
This is the corresponding request ID: https://dashboard.stripe.com/test/logs/req_zioC8Tp69ZFmIE
So can you clarify what you were expecting to see in the response, and what did you saw instead?
crystal vault
Great, one minute I'll try to break down exactly
crystal vault
Still here, just breaking this down
crystal vault
This is a customer who was recently migrated to Stripe via Braintree and had been backdated and billing cycle set to represent the same billing cycle they were on Braintree.
On this invoice here: in_1LQq4LLLAsLlRiDeNz81iW4o the product is $179.88, minus the unused time of $27.02, and minus a manual discount of $2.12 the total without tax is $150.74 and with a EU VAT tax rate of 19% the tax is $28.64 - a total paid by the customer of $179.38. This is correct to us.
On the upgrade to a higher tier with invoice in_1LQqTNLLAsLlRiDeoJxknRI0 we can see the correct price for the "educational pro" tier ($179.88) minus the unused time of $179.87, and minus the manual discount of $2.12 the total without tax is $177.77 which would have a tax amount of $33.78, but it seems the tax was not carried across from the previous unused time therefore says $73.08, which is more than two seats of tax ($67.56) which is what we would have expected. Therefore, the customer has paid $250.85 for the additional seat.
candid topaz
Hello 👋
Stepping in here and taking a look
crystal vault
Thanks!
candid topaz
yeah I have a feeling we don't carry over the previous tax when prorating
let me see if I can find some more context on this
crystal vault
Okay great, so as it seems the customer has paid $5.52 difference ($73.08 - $67.56) which was unexpected.
candid topaz
huh yeah can't think of why that'd be
let me ask some colleagues about this
candid topaz
It seems like we'll need more time to dig into the second invoice, can you write into our support team with as many as details that you can provide? Also, make sure to mention that you spoke with hanzo on discord.
I'll grab the ticket and me or someone on our team will respond as soon as we can
crystal vault
Okay I will do that - Thanks for your help so far