Impact on Invoices When Switching from Tax Inclusive to Tax Exclusive

Problem Statement

This article explains how switching your Chargebee pricing from tax inclusive to tax exclusive affects existing and future invoices.

Solution

When you change prices from Tax Inclusive to Tax Exclusive, previously generated invoices are not changed. For all future invoices—for existing subscriptions and new ones—tax is calculated and added on top of the base price and shown as a separate line.

Use case scenarios

• Region and currency both inclusive: Tax is included in the price; no separate tax line on the invoice.
• Region inclusive, currency exclusive: Mixed setup; tax treatment depends on region and currency configuration.
• Region and currency both exclusive: Tax is applied on top of the base price and displayed as a separate line on the invoice.

For a detailed walkthrough of these scenarios, refer to the screen recording or documentation that covers the three cases above.