[PM-5766] Enabled Automatic Tax for all customers (#3685)

* Removed TaxRate logic when creating or updating a Stripe subscription and replaced it with AutomaticTax enabled flag

* Updated Stripe webhook to update subscription to automatically calculate tax

* Removed TaxRate unit tests since Stripe now handles tax

* Removed test proration logic

* Including taxInfo when updating payment method

* Adding the address to the upgrade free org flow if it doesn't exist

* Fixed failing tests and added a new test to validate that the customer is updated

src/Billing/Controllers/StripeController.cs

@@ -21,7 +21,6 @@ using Customer = Stripe.Customer;
 using Event = Stripe.Event;
 using PaymentMethod = Stripe.PaymentMethod;
 using Subscription = Stripe.Subscription;
-using TaxRate = Bit.Core.Entities.TaxRate;
 using Transaction = Bit.Core.Entities.Transaction;
 using TransactionType = Bit.Core.Enums.TransactionType;
 
@@ -223,9 +222,17 @@ public class StripeController : Controller
                     $"Received null Subscription from Stripe for ID '{invoice.SubscriptionId}' while processing Event with ID '{parsedEvent.Id}'");
             }
 
-            var updatedSubscription = await VerifyCorrectTaxRateForCharge(invoice, subscription);
+            if (!subscription.AutomaticTax.Enabled)
+            {
+                subscription = await _stripeFacade.UpdateSubscription(subscription.Id,
+                    new SubscriptionUpdateOptions
+                    {
+                        DefaultTaxRates = new List<string>(),
+                        AutomaticTax = new SubscriptionAutomaticTaxOptions { Enabled = true }
+                    });
+            }
 
-            var (organizationId, userId) = GetIdsFromMetaData(updatedSubscription.Metadata);
+            var (organizationId, userId) = GetIdsFromMetaData(subscription.Metadata);
 
             var invoiceLineItemDescriptions = invoice.Lines.Select(i => i.Description).ToList();
 
@@ -246,7 +253,7 @@ public class StripeController : Controller
 
             if (organizationId.HasValue)
             {
-                if (IsSponsoredSubscription(updatedSubscription))
+                if (IsSponsoredSubscription(subscription))
                 {
                     await _validateSponsorshipCommand.ValidateSponsorshipAsync(organizationId.Value);
                 }
@@ -828,32 +835,6 @@ public class StripeController : Controller
             invoice.BillingReason == "subscription_cycle" && invoice.SubscriptionId != null;
     }
 
-    private async Task<Subscription> VerifyCorrectTaxRateForCharge(Invoice invoice, Subscription subscription)
-    {
-        if (!string.IsNullOrWhiteSpace(invoice?.CustomerAddress?.Country) && !string.IsNullOrWhiteSpace(invoice?.CustomerAddress?.PostalCode))
-        {
-            var localBitwardenTaxRates = await _taxRateRepository.GetByLocationAsync(
-                new TaxRate()
-                {
-                    Country = invoice.CustomerAddress.Country,
-                    PostalCode = invoice.CustomerAddress.PostalCode
-                }
-            );
-
-            if (localBitwardenTaxRates.Any())
-            {
-                var stripeTaxRate = await new TaxRateService().GetAsync(localBitwardenTaxRates.First().Id);
-                if (stripeTaxRate != null && !subscription.DefaultTaxRates.Any(x => x == stripeTaxRate))
-                {
-                    subscription.DefaultTaxRates = new List<Stripe.TaxRate> { stripeTaxRate };
-                    var subscriptionOptions = new SubscriptionUpdateOptions() { DefaultTaxRates = new List<string>() { stripeTaxRate.Id } };
-                    subscription = await new SubscriptionService().UpdateAsync(subscription.Id, subscriptionOptions);
-                }
-            }
-        }
-        return subscription;
-    }
-
     private static bool IsSponsoredSubscription(Subscription subscription) =>
         StaticStore.SponsoredPlans.Any(p => p.StripePlanId == subscription.Id);
 

src/Billing/Services/IStripeFacade.cs

@@ -33,4 +33,10 @@ public interface IStripeFacade
         SubscriptionGetOptions subscriptionGetOptions = null,
         RequestOptions requestOptions = null,
         CancellationToken cancellationToken = default);
+
+    Task<Subscription> UpdateSubscription(
+        string subscriptionId,
+        SubscriptionUpdateOptions subscriptionGetOptions = null,
+        RequestOptions requestOptions = null,
+        CancellationToken cancellationToken = default);
 }

src/Billing/Services/Implementations/StripeFacade.cs

@@ -44,4 +44,11 @@ public class StripeFacade : IStripeFacade
         RequestOptions requestOptions = null,
         CancellationToken cancellationToken = default) =>
         await _subscriptionService.GetAsync(subscriptionId, subscriptionGetOptions, requestOptions, cancellationToken);
+
+    public async Task<Subscription> UpdateSubscription(
+        string subscriptionId,
+        SubscriptionUpdateOptions subscriptionUpdateOptions = null,
+        RequestOptions requestOptions = null,
+        CancellationToken cancellationToken = default) =>
+        await _subscriptionService.UpdateAsync(subscriptionId, subscriptionUpdateOptions, requestOptions, cancellationToken);
 }

src/Core/AdminConsole/Services/Implementations/OrganizationService.cs

@@ -140,7 +140,7 @@ public class OrganizationService : IOrganizationService
 
         await _paymentService.SaveTaxInfoAsync(organization, taxInfo);
         var updated = await _paymentService.UpdatePaymentMethodAsync(organization,
-            paymentMethodType, paymentToken);
+            paymentMethodType, paymentToken, taxInfo);
         if (updated)
         {
             await ReplaceAndUpdateCacheAsync(organization);

src/Core/Services/Implementations/StripePaymentService.cs

@@ -98,23 +98,6 @@ public class StripePaymentService : IPaymentService
             throw new GatewayException("Payment method is not supported at this time.");
         }
 
-        if (taxInfo != null && !string.IsNullOrWhiteSpace(taxInfo.BillingAddressCountry) && !string.IsNullOrWhiteSpace(taxInfo.BillingAddressPostalCode))
-        {
-            var taxRateSearch = new TaxRate
-            {
-                Country = taxInfo.BillingAddressCountry,
-                PostalCode = taxInfo.BillingAddressPostalCode
-            };
-            var taxRates = await _taxRateRepository.GetByLocationAsync(taxRateSearch);
-
-            // should only be one tax rate per country/zip combo
-            var taxRate = taxRates.FirstOrDefault();
-            if (taxRate != null)
-            {
-                taxInfo.StripeTaxRateId = taxRate.Id;
-            }
-        }
-
         var subCreateOptions = new OrganizationPurchaseSubscriptionOptions(org, plan, taxInfo, additionalSeats, additionalStorageGb, premiumAccessAddon
         , additionalSmSeats, additionalServiceAccount);
 
@@ -163,6 +146,9 @@ public class StripePaymentService : IPaymentService
             });
             subCreateOptions.AddExpand("latest_invoice.payment_intent");
             subCreateOptions.Customer = customer.Id;
+
+            subCreateOptions.AutomaticTax = new Stripe.SubscriptionAutomaticTaxOptions { Enabled = true };
+
             subscription = await _stripeAdapter.SubscriptionCreateAsync(subCreateOptions);
             if (subscription.Status == "incomplete" && subscription.LatestInvoice?.PaymentIntent != null)
             {
@@ -244,25 +230,31 @@ public class StripePaymentService : IPaymentService
             throw new GatewayException("Could not find customer payment profile.");
         }
 
-        var taxInfo = upgrade.TaxInfo;
+        if (customer.Address is null &&
-        if (taxInfo != null && !string.IsNullOrWhiteSpace(taxInfo.BillingAddressCountry) && !string.IsNullOrWhiteSpace(taxInfo.BillingAddressPostalCode))
+            !string.IsNullOrEmpty(upgrade.TaxInfo?.BillingAddressCountry) &&
+            !string.IsNullOrEmpty(upgrade.TaxInfo?.BillingAddressPostalCode))
         {
-            var taxRateSearch = new TaxRate
+            var addressOptions = new Stripe.AddressOptions
             {
-                Country = taxInfo.BillingAddressCountry,
+                Country = upgrade.TaxInfo.BillingAddressCountry,
-                PostalCode = taxInfo.BillingAddressPostalCode
+                PostalCode = upgrade.TaxInfo.BillingAddressPostalCode,
+                // Line1 is required in Stripe's API, suggestion in Docs is to use Business Name instead.
+                Line1 = upgrade.TaxInfo.BillingAddressLine1 ?? string.Empty,
+                Line2 = upgrade.TaxInfo.BillingAddressLine2,
+                City = upgrade.TaxInfo.BillingAddressCity,
+                State = upgrade.TaxInfo.BillingAddressState,
             };
-            var taxRates = await _taxRateRepository.GetByLocationAsync(taxRateSearch);
+            var customerUpdateOptions = new Stripe.CustomerUpdateOptions { Address = addressOptions };
-
+            customerUpdateOptions.AddExpand("default_source");
-            // should only be one tax rate per country/zip combo
+            customerUpdateOptions.AddExpand("invoice_settings.default_payment_method");
-            var taxRate = taxRates.FirstOrDefault();
+            customer = await _stripeAdapter.CustomerUpdateAsync(org.GatewayCustomerId, customerUpdateOptions);
-            if (taxRate != null)
-            {
-                taxInfo.StripeTaxRateId = taxRate.Id;
-            }
         }
 
-        var subCreateOptions = new OrganizationUpgradeSubscriptionOptions(customer.Id, org, plan, upgrade);
+        var subCreateOptions = new OrganizationUpgradeSubscriptionOptions(customer.Id, org, plan, upgrade)
+        {
+            DefaultTaxRates = new List<string>(),
+            AutomaticTax = new Stripe.SubscriptionAutomaticTaxOptions { Enabled = true }
+        };
         var (stripePaymentMethod, paymentMethodType) = IdentifyPaymentMethod(customer, subCreateOptions);
 
         var subscription = await ChargeForNewSubscriptionAsync(org, customer, false,
@@ -459,26 +451,6 @@ public class StripePaymentService : IPaymentService
             Quantity = 1
         });
 
-        if (!string.IsNullOrWhiteSpace(taxInfo?.BillingAddressCountry)
-                && !string.IsNullOrWhiteSpace(taxInfo?.BillingAddressPostalCode))
-        {
-            var taxRates = await _taxRateRepository.GetByLocationAsync(
-                new TaxRate()
-                {
-                    Country = taxInfo.BillingAddressCountry,
-                    PostalCode = taxInfo.BillingAddressPostalCode
-                }
-            );
-            var taxRate = taxRates.FirstOrDefault();
-            if (taxRate != null)
-            {
-                subCreateOptions.DefaultTaxRates = new List<string>(1)
-                {
-                    taxRate.Id
-                };
-            }
-        }
-
         if (additionalStorageGb > 0)
         {
             subCreateOptions.Items.Add(new Stripe.SubscriptionItemOptions
@@ -488,6 +460,8 @@ public class StripePaymentService : IPaymentService
             });
         }
 
+        subCreateOptions.AutomaticTax = new Stripe.SubscriptionAutomaticTaxOptions { Enabled = true };
+
         var subscription = await ChargeForNewSubscriptionAsync(user, customer, createdStripeCustomer,
             stripePaymentMethod, paymentMethodType, subCreateOptions, braintreeCustomer);
 
@@ -525,7 +499,8 @@ public class StripePaymentService : IPaymentService
                 {
                     Customer = customer.Id,
                     SubscriptionItems = ToInvoiceSubscriptionItemOptions(subCreateOptions.Items),
-                    SubscriptionDefaultTaxRates = subCreateOptions.DefaultTaxRates,
+                    AutomaticTax =
+                        new Stripe.InvoiceAutomaticTaxOptions { Enabled = subCreateOptions.AutomaticTax.Enabled }
                 });
 
                 if (previewInvoice.AmountDue > 0)
@@ -583,7 +558,8 @@ public class StripePaymentService : IPaymentService
                 {
                     Customer = customer.Id,
                     SubscriptionItems = ToInvoiceSubscriptionItemOptions(subCreateOptions.Items),
-                    SubscriptionDefaultTaxRates = subCreateOptions.DefaultTaxRates,
+                    AutomaticTax =
+                        new Stripe.InvoiceAutomaticTaxOptions { Enabled = subCreateOptions.AutomaticTax.Enabled }
                 });
                 if (previewInvoice.AmountDue > 0)
                 {
@@ -593,6 +569,7 @@ public class StripePaymentService : IPaymentService
 
             subCreateOptions.OffSession = true;
             subCreateOptions.AddExpand("latest_invoice.payment_intent");
+            subCreateOptions.AutomaticTax = new Stripe.SubscriptionAutomaticTaxOptions { Enabled = true };
             subscription = await _stripeAdapter.SubscriptionCreateAsync(subCreateOptions);
             if (subscription.Status == "incomplete" && subscription.LatestInvoice?.PaymentIntent != null)
             {
@@ -692,6 +669,8 @@ public class StripePaymentService : IPaymentService
             DaysUntilDue = daysUntilDue ?? 1,
             CollectionMethod = "send_invoice",
             ProrationDate = prorationDate,
+            DefaultTaxRates = new List<string>(),
+            AutomaticTax = new Stripe.SubscriptionAutomaticTaxOptions { Enabled = true }
         };
 
         if (!subscriptionUpdate.UpdateNeeded(sub))
@@ -700,28 +679,6 @@ public class StripePaymentService : IPaymentService
             return null;
         }
 
-        var customer = await _stripeAdapter.CustomerGetAsync(sub.CustomerId);
-
-        if (!string.IsNullOrWhiteSpace(customer?.Address?.Country)
-                && !string.IsNullOrWhiteSpace(customer?.Address?.PostalCode))
-        {
-            var taxRates = await _taxRateRepository.GetByLocationAsync(
-                new TaxRate()
-                {
-                    Country = customer.Address.Country,
-                    PostalCode = customer.Address.PostalCode
-                }
-            );
-            var taxRate = taxRates.FirstOrDefault();
-            if (taxRate != null && !sub.DefaultTaxRates.Any(x => x.Equals(taxRate.Id)))
-            {
-                subUpdateOptions.DefaultTaxRates = new List<string>(1)
-                {
-                    taxRate.Id
-                };
-            }
-        }
-
         string paymentIntentClientSecret = null;
         try
         {

test/Core.Test/Services/StripePaymentServiceTests.cs

@@ -2,7 +2,6 @@
 using Bit.Core.Enums;
 using Bit.Core.Exceptions;
 using Bit.Core.Models.Business;
-using Bit.Core.Repositories;
 using Bit.Core.Services;
 using Bit.Core.Settings;
 using Bit.Core.Utilities;
@@ -14,7 +13,6 @@ using Xunit;
 using Customer = Braintree.Customer;
 using PaymentMethod = Braintree.PaymentMethod;
 using PaymentMethodType = Bit.Core.Enums.PaymentMethodType;
-using TaxRate = Bit.Core.Entities.TaxRate;
 
 namespace Bit.Core.Test.Services;
 
@@ -259,65 +257,6 @@ public class StripePaymentServiceTests
         ));
     }
 
-    [Theory, BitAutoData]
-    public async void PurchaseOrganizationAsync_Stripe_TaxRate(SutProvider<StripePaymentService> sutProvider, Organization organization, string paymentToken, TaxInfo taxInfo)
-    {
-        var plan = StaticStore.GetPlan(PlanType.EnterpriseAnnually);
-
-        var stripeAdapter = sutProvider.GetDependency<IStripeAdapter>();
-        stripeAdapter.CustomerCreateAsync(default).ReturnsForAnyArgs(new Stripe.Customer
-        {
-            Id = "C-1",
-        });
-        stripeAdapter.SubscriptionCreateAsync(default).ReturnsForAnyArgs(new Stripe.Subscription
-        {
-            Id = "S-1",
-            CurrentPeriodEnd = DateTime.Today.AddDays(10),
-        });
-        sutProvider.GetDependency<ITaxRateRepository>().GetByLocationAsync(Arg.Is<TaxRate>(t =>
-                t.Country == taxInfo.BillingAddressCountry && t.PostalCode == taxInfo.BillingAddressPostalCode))
-            .Returns(new List<TaxRate> { new() { Id = "T-1" } });
-
-        var result = await sutProvider.Sut.PurchaseOrganizationAsync(organization, PaymentMethodType.Card, paymentToken, plan, 0, 0, false, taxInfo);
-
-        Assert.Null(result);
-
-        await stripeAdapter.Received().SubscriptionCreateAsync(Arg.Is<Stripe.SubscriptionCreateOptions>(s =>
-            s.DefaultTaxRates.Count == 1 &&
-            s.DefaultTaxRates[0] == "T-1"
-        ));
-    }
-
-    [Theory, BitAutoData]
-    public async void PurchaseOrganizationAsync_Stripe_TaxRate_SM(SutProvider<StripePaymentService> sutProvider, Organization organization, string paymentToken, TaxInfo taxInfo)
-    {
-        var plan = StaticStore.GetPlan(PlanType.EnterpriseAnnually);
-
-        var stripeAdapter = sutProvider.GetDependency<IStripeAdapter>();
-        stripeAdapter.CustomerCreateAsync(default).ReturnsForAnyArgs(new Stripe.Customer
-        {
-            Id = "C-1",
-        });
-        stripeAdapter.SubscriptionCreateAsync(default).ReturnsForAnyArgs(new Stripe.Subscription
-        {
-            Id = "S-1",
-            CurrentPeriodEnd = DateTime.Today.AddDays(10),
-        });
-        sutProvider.GetDependency<ITaxRateRepository>().GetByLocationAsync(Arg.Is<TaxRate>(t =>
-                t.Country == taxInfo.BillingAddressCountry && t.PostalCode == taxInfo.BillingAddressPostalCode))
-            .Returns(new List<TaxRate> { new() { Id = "T-1" } });
-
-        var result = await sutProvider.Sut.PurchaseOrganizationAsync(organization, PaymentMethodType.Card, paymentToken, plan, 2, 2,
-            false, taxInfo, false, 2, 2);
-
-        Assert.Null(result);
-
-        await stripeAdapter.Received().SubscriptionCreateAsync(Arg.Is<Stripe.SubscriptionCreateOptions>(s =>
-            s.DefaultTaxRates.Count == 1 &&
-            s.DefaultTaxRates[0] == "T-1"
-        ));
-    }
-
     [Theory, BitAutoData]
     public async void PurchaseOrganizationAsync_Stripe_Declined(SutProvider<StripePaymentService> sutProvider, Organization organization, string paymentToken, TaxInfo taxInfo)
     {
@@ -678,6 +617,14 @@ public class StripePaymentServiceTests
                 { "btCustomerId", "B-123" },
             }
         });
+        stripeAdapter.CustomerUpdateAsync(default).ReturnsForAnyArgs(new Stripe.Customer
+        {
+            Id = "C-1",
+            Metadata = new Dictionary<string, string>
+            {
+                { "btCustomerId", "B-123" },
+            }
+        });
         stripeAdapter.InvoiceUpcomingAsync(default).ReturnsForAnyArgs(new Stripe.Invoice
         {
             PaymentIntent = new Stripe.PaymentIntent { Status = "requires_payment_method", },
@@ -715,6 +662,14 @@ public class StripePaymentServiceTests
                 { "btCustomerId", "B-123" },
             }
         });
+        stripeAdapter.CustomerUpdateAsync(default).ReturnsForAnyArgs(new Stripe.Customer
+        {
+            Id = "C-1",
+            Metadata = new Dictionary<string, string>
+            {
+                { "btCustomerId", "B-123" },
+            }
+        });
         stripeAdapter.InvoiceUpcomingAsync(default).ReturnsForAnyArgs(new Stripe.Invoice
         {
             PaymentIntent = new Stripe.PaymentIntent { Status = "requires_payment_method", },
@@ -737,4 +692,58 @@ public class StripePaymentServiceTests
 
         Assert.Null(result);
     }
+
+    [Theory, BitAutoData]
+    public async void UpgradeFreeOrganizationAsync_WhenCustomerHasNoAddress_UpdatesCustomerAddressWithTaxInfo(
+        SutProvider<StripePaymentService> sutProvider,
+        Organization organization,
+        TaxInfo taxInfo)
+    {
+        organization.GatewaySubscriptionId = null;
+        var stripeAdapter = sutProvider.GetDependency<IStripeAdapter>();
+        stripeAdapter.CustomerGetAsync(default).ReturnsForAnyArgs(new Stripe.Customer
+        {
+            Id = "C-1",
+            Metadata = new Dictionary<string, string>
+            {
+                { "btCustomerId", "B-123" },
+            }
+        });
+        stripeAdapter.CustomerUpdateAsync(default).ReturnsForAnyArgs(new Stripe.Customer
+        {
+            Id = "C-1",
+            Metadata = new Dictionary<string, string>
+            {
+                { "btCustomerId", "B-123" },
+            }
+        });
+        stripeAdapter.InvoiceUpcomingAsync(default).ReturnsForAnyArgs(new Stripe.Invoice
+        {
+            PaymentIntent = new Stripe.PaymentIntent { Status = "requires_payment_method", },
+            AmountDue = 0
+        });
+        stripeAdapter.SubscriptionCreateAsync(default).ReturnsForAnyArgs(new Stripe.Subscription { });
+
+        var upgrade = new OrganizationUpgrade()
+        {
+            AdditionalStorageGb = 1,
+            AdditionalSeats = 10,
+            PremiumAccessAddon = false,
+            TaxInfo = taxInfo,
+            AdditionalSmSeats = 5,
+            AdditionalServiceAccounts = 50
+        };
+
+        var plan = StaticStore.GetPlan(PlanType.EnterpriseAnnually);
+        _ = await sutProvider.Sut.UpgradeFreeOrganizationAsync(organization, plan, upgrade);
+
+        await stripeAdapter.Received()
+            .CustomerUpdateAsync(organization.GatewayCustomerId, Arg.Is<Stripe.CustomerUpdateOptions>(c =>
+                c.Address.Country == taxInfo.BillingAddressCountry &&
+                c.Address.PostalCode == taxInfo.BillingAddressPostalCode &&
+                c.Address.Line1 == taxInfo.BillingAddressLine1 &&
+                c.Address.Line2 == taxInfo.BillingAddressLine2 &&
+                c.Address.City == taxInfo.BillingAddressCity &&
+                c.Address.State == taxInfo.BillingAddressState));
+    }
 }