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What will happen if tax rate changes during the time of subscription or plan (subscription amount) gets changed? What if customer change its location?
If you are using our subscription support (using our Checkout form or having custom integration with appropriate metadata set, and webhooks enabled) tax rate changes and subscription amount updates (plan changes, direct subscription amount changes, discounts etc.) are handled automatically.
For each recurring payment of a subscription Taxamo uses the evidence from the placeholder transaction to determine the tax country in order to get the current tax rate for the current payment. Each time a subscription charges a payment Taxamo receives a webhook notification from the PSP and will use the provided amount, so all amount changes are handled automatically. Note that for Braintree and PayPal transactions, the payment amount is taken as the total amount of the transaction and tax gets included in that price. Stripe on the other hand has the options: ‘Update Stripe invoices with tax’ and ‘Add line with tax on the invoice for subscription’. If either of them is enabled tax will be added to payment amount which allows Stripe renewals to always be up-to-date with current rates. If both of these are disabled tax will be included in that amount.
The only situation that requires an additional step is if customer’s location changes. If that happens a new placeholder transaction needs to be created containing the new location evidence, and the corresponding subscription at your PSP must be linked to the new placeholder. Check our documentation for further details on setting up a placeholder transaction and linking it to its corresponding subscription at your PSP (explained under the ‘Subscriptions without Taxamo Checkout’ feature).