Updating tax rates on Stripe subscriptions

The tax rate assigned to a Stripe subscription is calculated at the time the subscription is created.

If the tax rate changes or your customer changes their billing address, it might be necessary to update the subscription to ensure the correct tax rate continues to be applied. There are two possible scenarios:

• The subscription price includes taxes. No further action is required. You’ll see the updated tax rates applied on your invoices for future charges and subscriptions.

• The subscription price does not include taxes. In this case, it will be necessary to update the subscription when the tax type changes. Quaderno can help with this.

  
  

  To do this, go to the preferences page and enable the option Update Stripe subscriptions automatically if a tax rate changes. From that point on, Quaderno will automatically update your subscriptions in Stripe when the tax changes. Keep in mind that this option will affect the final amount that is periodically charged to your customers.