Managing tax rate changes

Problem Statement

You want to know when new tax rates apply to existing customers, how they apply to trial subscriptions, and how to handle temporary rate changes.

Solution

Taxes are applied when an invoice is generated (subscription, renewal, or one-time charge). Configure taxes for every region where you have customers. See Tax configuration.

When do new tax rates apply?

After you change a tax rate, the new rate applies to the next invoice generated for all existing customers.

Subscriptions in trial

No invoice is generated during trial. When the subscription becomes Active, the first invoice uses the current tax rate configured in Chargebee.

Temporary tax rates

For frequent rate changes (e.g., temporary pandemic rates), configure separate tax profiles so you can switch between them as needed. Multiple tax profiles are available on Performance and Enterprise plans.