thule_41493

[quaint wigeon]

Hello, when upgrading a subscription with proration_behavior != none and billing_cycle_anchor=now, Stripe computes wrong the prorated refund for customer's that has changed their tax exemption status before upgrading
What do you mean we calculate the prorated amount wrong? Can you provide an example?

But I observe that when billing_cycle_anchor=now, Stripe auto generate an invoice when updating subscription. Is there anyway to turn this off?
What exactly is your usecase for resetting the anchor to the current time and not generating an invoice?

[gilded gull]

What do you mean we calculate the prorated amount wrong? Can you provide an example?
A new customer buys a subscription with 1 seat ($100/ seat) with 10% tax rate. His first invoice is $110. He then changes his tax status from taxable to tax exempt (i.e.: provide valid VAT number). He upgrades his subscription to new one with $200/seat. Currently, when calculating prorated refund for the first invoice, for example, he does upgrade right way after first buy, prorated refund amount on Stripe is $100, instead of $110

[quaint wigeon]

That to me sounds expected. If their tax status was originally taxable. They shouldn't get a refund for tax collected

But idk. Not really a tax expert

For concerns on that, it would probably be best to ask support

https://support.stripe.com/contact

[gilded gull]

In his first invoice, he is taxable, so he should get refund back with tax

So, I can workaround to fix this calculation, but I I want to turn off the auto generating invoice when updating subscription with billing_cycle_anchor=now. Do you know any way to do that? Or it is impossible on Stripe?

[quaint wigeon]

I don't think you can do that

Why do you not want to generate an invoice if resetting billing cycle anchor to current time?

[gilded gull]

As I said above, to fix the prorated refund calculation on Stripe when upgrading subscription for the scenario above

The workaround solution is: I calculate prorated refund amount, manually create invoice, and then update subscription with billing cycle reset

[quaint wigeon]

If you're passing billing_cycle_anchor=now we always invoice

You could create negative invoice items to zero out the invoice though

[gilded gull]

Thanks, I checked the documents and I dont think I can turn off the auto generating invoice when reseting billing cycle. But I want to ask here to confirm that I do not miss the case