Impact on Invoices When Switching from Tax Inclusive to Tax Exclusive

Summary

When transitioning your Chargebee pricing from Tax Inclusive to Tax Exclusive, it's important to understand how this change impacts your invoicing.

Once the prices are marked as Tax Exclusive, there will be no changes to previously generated invoices. However, for all future invoices—both for existing subscriptions and new ones—the tax will be calculated and added on top of the base price.

Use Case Scenarios

To help visualize the behavior, here's a detailed screen recording that covers three different scenarios:

1. Region and Currency are Inclusive Taxes are included in the price. No separate tax line appears on the invoice.

2. Region is Inclusive but Currency is Exclusive A mixed configuration. Taxes may apply based on the region but are treated differently for currencies.

3. Region and Currency are Exclusive Taxes are applied on top of the base price and shown separately on the invoice.