[PM-18028] Enabling automatic tax for customers without country or with manual tax rates set (#5376)

src/Billing/Services/Implementations/UpcomingInvoiceHandler.cs

@@ -1,6 +1,7 @@
 using Bit.Billing.Constants;
 using Bit.Core.AdminConsole.Entities;
 using Bit.Core.AdminConsole.Repositories;
+using Bit.Core.Billing.Extensions;
 using Bit.Core.OrganizationFeatures.OrganizationSponsorships.FamiliesForEnterprise.Interfaces;
 using Bit.Core.Repositories;
 using Bit.Core.Services;
@@ -160,16 +161,16 @@ public class UpcomingInvoiceHandler : IUpcomingInvoiceHandler
 
     private async Task<Subscription> TryEnableAutomaticTaxAsync(Subscription subscription)
     {
-        if (subscription.AutomaticTax.Enabled)
+        var customerGetOptions = new CustomerGetOptions { Expand = ["tax"] };
+        var customer = await _stripeFacade.GetCustomer(subscription.CustomerId, customerGetOptions);
+
+        var subscriptionUpdateOptions = new SubscriptionUpdateOptions();
+
+        if (!subscriptionUpdateOptions.EnableAutomaticTax(customer, subscription))
         {
             return subscription;
         }
 
-        var subscriptionUpdateOptions = new SubscriptionUpdateOptions
-        {
-            AutomaticTax = new SubscriptionAutomaticTaxOptions { Enabled = true }
-        };
-
         return await _stripeFacade.UpdateSubscription(subscription.Id, subscriptionUpdateOptions);
     }
 

src/Core/Billing/Extensions/CustomerExtensions.cs

@@ -0,0 +1,16 @@
+using Bit.Core.Billing.Constants;
+using Stripe;
+
+namespace Bit.Core.Billing.Extensions;
+
+public static class CustomerExtensions
+{
+
+    /// <summary>
+    /// Determines if a Stripe customer supports automatic tax
+    /// </summary>
+    /// <param name="customer"></param>
+    /// <returns></returns>
+    public static bool HasTaxLocationVerified(this Customer customer) =>
+        customer?.Tax?.AutomaticTax == StripeConstants.AutomaticTaxStatus.Supported;
+}

src/Core/Billing/Extensions/SubscriptionCreateOptionsExtensions.cs

@@ -0,0 +1,26 @@
+using Stripe;
+
+namespace Bit.Core.Billing.Extensions;
+
+public static class SubscriptionCreateOptionsExtensions
+{
+    /// <summary>
+    /// Attempts to enable automatic tax for given new subscription options.
+    /// </summary>
+    /// <param name="options"></param>
+    /// <param name="customer">The existing customer.</param>
+    /// <returns>Returns true when successful, false when conditions are not met.</returns>
+    public static bool EnableAutomaticTax(this SubscriptionCreateOptions options, Customer customer)
+    {
+        // We might only need to check the automatic tax status.
+        if (!customer.HasTaxLocationVerified() && string.IsNullOrWhiteSpace(customer.Address?.Country))
+        {
+            return false;
+        }
+
+        options.DefaultTaxRates = [];
+        options.AutomaticTax = new SubscriptionAutomaticTaxOptions { Enabled = true };
+
+        return true;
+    }
+}

src/Core/Billing/Extensions/SubscriptionUpdateOptionsExtensions.cs

@@ -0,0 +1,35 @@
+using Stripe;
+
+namespace Bit.Core.Billing.Extensions;
+
+public static class SubscriptionUpdateOptionsExtensions
+{
+    /// <summary>
+    /// Attempts to enable automatic tax for given subscription options.
+    /// </summary>
+    /// <param name="options"></param>
+    /// <param name="customer">The existing customer to which the subscription belongs.</param>
+    /// <param name="subscription">The existing subscription.</param>
+    /// <returns>Returns true when successful, false when conditions are not met.</returns>
+    public static bool EnableAutomaticTax(
+        this SubscriptionUpdateOptions options,
+        Customer customer,
+        Subscription subscription)
+    {
+        if (subscription.AutomaticTax.Enabled)
+        {
+            return false;
+        }
+
+        // We might only need to check the automatic tax status.
+        if (!customer.HasTaxLocationVerified() && string.IsNullOrWhiteSpace(customer.Address?.Country))
+        {
+            return false;
+        }
+
+        options.DefaultTaxRates = [];
+        options.AutomaticTax = new SubscriptionAutomaticTaxOptions { Enabled = true };
+
+        return true;
+    }
+}

src/Core/Billing/Extensions/UpcomingInvoiceOptionsExtensions.cs

@@ -0,0 +1,35 @@
+using Stripe;
+
+namespace Bit.Core.Billing.Extensions;
+
+public static class UpcomingInvoiceOptionsExtensions
+{
+    /// <summary>
+    /// Attempts to enable automatic tax for given upcoming invoice options.
+    /// </summary>
+    /// <param name="options"></param>
+    /// <param name="customer">The existing customer to which the upcoming invoice belongs.</param>
+    /// <param name="subscription">The existing subscription to which the upcoming invoice belongs.</param>
+    /// <returns>Returns true when successful, false when conditions are not met.</returns>
+    public static bool EnableAutomaticTax(
+        this UpcomingInvoiceOptions options,
+        Customer customer,
+        Subscription subscription)
+    {
+        if (subscription != null && subscription.AutomaticTax.Enabled)
+        {
+            return false;
+        }
+
+        // We might only need to check the automatic tax status.
+        if (!customer.HasTaxLocationVerified() && string.IsNullOrWhiteSpace(customer.Address?.Country))
+        {
+            return false;
+        }
+
+        options.AutomaticTax = new InvoiceAutomaticTaxOptions { Enabled = true };
+        options.SubscriptionDefaultTaxRates = [];
+
+        return true;
+    }
+}

src/Core/Billing/Services/Implementations/PremiumUserBillingService.cs

@@ -320,7 +320,7 @@ public class PremiumUserBillingService(
         {
             AutomaticTax = new SubscriptionAutomaticTaxOptions
             {
-                Enabled = true
+                Enabled = customer.Tax?.AutomaticTax == StripeConstants.AutomaticTaxStatus.Supported,
             },
             CollectionMethod = StripeConstants.CollectionMethod.ChargeAutomatically,
             Customer = customer.Id,

src/Core/Billing/Services/Implementations/SubscriberService.cs

@@ -661,11 +661,21 @@ public class SubscriberService(
             }
         }
 
-        await stripeAdapter.SubscriptionUpdateAsync(subscriber.GatewaySubscriptionId,
-            new SubscriptionUpdateOptions
-            {
-                AutomaticTax = new SubscriptionAutomaticTaxOptions { Enabled = true },
-            });
+        if (SubscriberIsEligibleForAutomaticTax(subscriber, customer))
+        {
+            await stripeAdapter.SubscriptionUpdateAsync(subscriber.GatewaySubscriptionId,
+                new SubscriptionUpdateOptions
+                {
+                    AutomaticTax = new SubscriptionAutomaticTaxOptions { Enabled = true }
+                });
+        }
+
+        return;
+
+        bool SubscriberIsEligibleForAutomaticTax(ISubscriber localSubscriber, Customer localCustomer)
+            => !string.IsNullOrEmpty(localSubscriber.GatewaySubscriptionId) &&
+               (localCustomer.Subscriptions?.Any(sub => sub.Id == localSubscriber.GatewaySubscriptionId && !sub.AutomaticTax.Enabled) ?? false) &&
+               localCustomer.Tax?.AutomaticTax == StripeConstants.AutomaticTaxStatus.Supported;
     }
 
     public async Task VerifyBankAccount(

src/Core/Services/Implementations/StripePaymentService.cs

@@ -177,7 +177,7 @@ public class StripePaymentService : IPaymentService
             customer = await _stripeAdapter.CustomerCreateAsync(customerCreateOptions);
             subCreateOptions.AddExpand("latest_invoice.payment_intent");
             subCreateOptions.Customer = customer.Id;
-            subCreateOptions.AutomaticTax = new SubscriptionAutomaticTaxOptions { Enabled = true };
+            subCreateOptions.EnableAutomaticTax(customer);
 
             subscription = await _stripeAdapter.SubscriptionCreateAsync(subCreateOptions);
             if (subscription.Status == "incomplete" && subscription.LatestInvoice?.PaymentIntent != null)
@@ -358,10 +358,9 @@ public class StripePaymentService : IPaymentService
             customer = await _stripeAdapter.CustomerUpdateAsync(org.GatewayCustomerId, customerUpdateOptions);
         }
 
-        var subCreateOptions = new OrganizationUpgradeSubscriptionOptions(customer.Id, org, plan, upgrade)
-        {
-            AutomaticTax = new SubscriptionAutomaticTaxOptions { Enabled = true }
-        };
+        var subCreateOptions = new OrganizationUpgradeSubscriptionOptions(customer.Id, org, plan, upgrade);
+
+        subCreateOptions.EnableAutomaticTax(customer);
 
         var (stripePaymentMethod, paymentMethodType) = IdentifyPaymentMethod(customer, subCreateOptions);
 
@@ -520,10 +519,6 @@ public class StripePaymentService : IPaymentService
 
             var customerCreateOptions = new CustomerCreateOptions
             {
-                Tax = new CustomerTaxOptions
-                {
-                    ValidateLocation = StripeConstants.ValidateTaxLocationTiming.Immediately
-                },
                 Description = user.Name,
                 Email = user.Email,
                 Metadata = stripeCustomerMetadata,
@@ -561,7 +556,6 @@ public class StripePaymentService : IPaymentService
 
         var subCreateOptions = new SubscriptionCreateOptions
         {
-            AutomaticTax = new SubscriptionAutomaticTaxOptions { Enabled = true },
             Customer = customer.Id,
             Items = [],
             Metadata = new Dictionary<string, string>
@@ -581,10 +575,12 @@ public class StripePaymentService : IPaymentService
             subCreateOptions.Items.Add(new SubscriptionItemOptions
             {
                 Plan = StoragePlanId,
-                Quantity = additionalStorageGb,
+                Quantity = additionalStorageGb
             });
         }
 
+        subCreateOptions.EnableAutomaticTax(customer);
+
         var subscription = await ChargeForNewSubscriptionAsync(user, customer, createdStripeCustomer,
             stripePaymentMethod, paymentMethodType, subCreateOptions, braintreeCustomer);
 
@@ -622,7 +618,10 @@ public class StripePaymentService : IPaymentService
                     SubscriptionItems = ToInvoiceSubscriptionItemOptions(subCreateOptions.Items)
                 });
 
-                previewInvoice.AutomaticTax = new InvoiceAutomaticTax { Enabled = true };
+                if (customer.HasTaxLocationVerified())
+                {
+                    previewInvoice.AutomaticTax = new InvoiceAutomaticTax { Enabled = true };
+                }
 
                 if (previewInvoice.AmountDue > 0)
                 {
@@ -680,12 +679,10 @@ public class StripePaymentService : IPaymentService
                     Customer = customer.Id,
                     SubscriptionItems = ToInvoiceSubscriptionItemOptions(subCreateOptions.Items),
                     SubscriptionDefaultTaxRates = subCreateOptions.DefaultTaxRates,
-                    AutomaticTax = new InvoiceAutomaticTaxOptions
-                    {
-                        Enabled = true
-                    }
                 };
 
+                upcomingInvoiceOptions.EnableAutomaticTax(customer, null);
+
                 var previewInvoice = await _stripeAdapter.InvoiceUpcomingAsync(upcomingInvoiceOptions);
 
                 if (previewInvoice.AmountDue > 0)
@@ -804,11 +801,7 @@ public class StripePaymentService : IPaymentService
             Items = updatedItemOptions,
             ProrationBehavior = invoiceNow ? Constants.AlwaysInvoice : Constants.CreateProrations,
             DaysUntilDue = daysUntilDue ?? 1,
-            CollectionMethod = "send_invoice",
-            AutomaticTax = new SubscriptionAutomaticTaxOptions
-            {
-                Enabled = true
-            }
+            CollectionMethod = "send_invoice"
         };
         if (!invoiceNow && isAnnualPlan && sub.Status.Trim() != "trialing")
         {
@@ -816,6 +809,8 @@ public class StripePaymentService : IPaymentService
                 new SubscriptionPendingInvoiceItemIntervalOptions { Interval = "month" };
         }
 
+        subUpdateOptions.EnableAutomaticTax(sub.Customer, sub);
+
         if (!subscriptionUpdate.UpdateNeeded(sub))
         {
             // No need to update subscription, quantity matches
@@ -1500,11 +1495,13 @@ public class StripePaymentService : IPaymentService
             if (!string.IsNullOrEmpty(subscriber.GatewaySubscriptionId) &&
                 customer.Subscriptions.Any(sub =>
                     sub.Id == subscriber.GatewaySubscriptionId &&
-                    !sub.AutomaticTax.Enabled))
+                    !sub.AutomaticTax.Enabled) &&
+                customer.HasTaxLocationVerified())
             {
                 var subscriptionUpdateOptions = new SubscriptionUpdateOptions
                 {
-                    AutomaticTax = new SubscriptionAutomaticTaxOptions { Enabled = true }
+                    AutomaticTax = new SubscriptionAutomaticTaxOptions { Enabled = true },
+                    DefaultTaxRates = []
                 };
 
                 _ = await _stripeAdapter.SubscriptionUpdateAsync(