When to read this
You're trying to decide whether to commit to an annual subscription (cheaper but upfront) or keep it monthly (flexible but more expensive over time). This article walks through the math, the right-decision rule of thumb, and the mechanics of switching between the two.
For the broader plan-switching context, see switch or cancel your plan. For the mid-cycle proration math when you change cycles, see prorated billing.
The discount
The annual saving across all paid plans is roughly 17% — you effectively pay for 10 months and get 12.
| Plan | Monthly | Annual | Annual saving vs monthly × 12 |
|---|---|---|---|
| Starter | €29/mo | €290/yr | €58 (≈17%) |
| Business | €49/mo | €490/yr | €98 (≈17%) |
| Growth | €129/mo | €1,290/yr | €258 (≈17%) |
Annual is paid upfront in a single charge. Monthly recurs each month on the billing date.
The 17% saving is consistent across plans because the underlying logic is "10 months for the price of 12". It's not a tiered discount that gets bigger on higher plans.
When to pick annual
The right rule of thumb: commit to annual when you've been using TaxItEasy for 2–3 months and you know it's the right tool. By that point you've seen what the AI does, you've imported a real month or two of invoices, you have a feel for whether the workflow saves your time. The 17% saving pays back in roughly 2 months; if you'll use the service for more than 2–3 months, annual is the cheaper choice.
Other signals that point to annual:
- Predictable yearly accounting. One invoice from us per year is easier to categorise than 12.
- Confident in the plan tier. You can still upgrade mid-annual-cycle — proration handles it — but you can't downgrade until the renewal date. So picking annual locks you to at least the current tier until renewal.
- Cash-flow friendly. Paying €290 once is sometimes easier than budgeting €29 × 12 monthly.
When to stay monthly
Three good reasons:
- First month or two. Keep your exit cheap while you're still evaluating. Cancelling a monthly subscription costs at most one extra month; cancelling an annual subscription mid-cycle means writing off the unused months.
- Uncertain about the right plan tier. Monthly switches are cheaper because the proration is small. If you might bounce between Starter and Business depending on volume, monthly lets you do that without committing big upfront.
- Cash-flow reason to spread cost. For freelancers and small businesses, monthly recurring charges are easier on cash flow than annual upfront.
If you're uncertain, monthly is the safer default. The 17% saving is real but not life-changing; the optionality of monthly is worth more in the first few months than the saving is.
Switching between annual and monthly
Monthly → annual (anytime)
Effective immediately, prorated:
- Stripe credits the unused portion of your current month (e.g. if you're 10 days into a 30-day month, you get back ~67% of the monthly charge as credit).
- Stripe charges the full annual amount minus that credit.
- You're now on the annual plan, paying upfront for the next 365 days.
Net: you pay the annual amount minus a small partial-month credit. Renewal is exactly 365 days from this moment.
Annual → monthly (period-end)
Treated as a downgrade. Scheduled for the end of the annual cycle:
- You keep your annual benefits (the discount you locked in) until the renewal date.
- At the renewal date, you switch to monthly billing at the listed monthly price.
- No refund for the unused months (annual is upfront, period-end downgrade — same logic as plan-tier downgrades).
If you want a partial refund of the annual subscription because the service didn't work for you, that falls under our refund policy on /pricing#faq — service-broken-on-our-side cases are refunded; change-of-mind for the unused portion isn't.
When does the annual renewal hit
Exactly one year after the day you upgraded to annual (or last renewed). The renewal date is fixed at the moment of the most recent annual charge; it doesn't shift if you upgrade or downgrade plans mid-cycle.
30-day renewal reminder. Stripe emails you 30 days before the annual renewal date so you can:
- Verify the renewal amount matches your expectation.
- Switch to monthly if you'd rather not renew annually again.
- Cancel (downgrade to Free) to stop the renewal entirely.
- Update payment method if your card has expired since the last renewal.
If you ignore the reminder, the renewal charges automatically on the renewal date.
Failed annual renewal
If your card fails on the annual renewal:
- Stripe retries over 3 weeks while keeping your access running. You see a banner in the app prompting you to update payment method.
- During the retry window, the subscription is "past due" but still active. You can fix the card and the next retry succeeds.
- After 3 weeks of consecutive failures, your account auto-downgrades to Free (or the lowest plan you've paid for previously). Your data stays; only the higher-tier features are removed.
The 3-week window matches what Stripe gives for monthly subscriptions — the failed-renewal grace period is the same for both billing cycles.
VAT and the annual cycle
If you've added your VAT ID for reverse charge (EU-VAT-registered business outside Cyprus), the annual invoice is reverse-charged the same way as a monthly invoice — VAT 0% with the relevant Cyprus law reference. See VAT reverse charge for EU businesses for the mechanics. The reverse-charge treatment applies regardless of the billing cycle.
For non-EU buyers and EU consumers without a VAT ID, VAT is collected at your country's rate the same way for annual or monthly.
Edge cases
I changed plan AND switched annual mid-year — what's the math? Stripe handles it. You see the exact number on the confirmation screen. If it looks wrong, write to [email protected] with [BILLING] and the timestamps — we can walk through the underlying calculation.
I want to cancel my annual subscription and get a partial refund. Annual is paid upfront and non-refundable for the unused months under our standard refund policy. Exceptions for service-broken-on-our-side cases (which we refund); for change-of-mind we keep the payment and you can downgrade to Free at the next renewal. See /pricing#faq for the full policy.
I want to gift an annual subscription. Not supported as a feature, but you can pay for someone else's account: ask them to set up the subscription on their own email, then provide them the funds (Stripe doesn't have a "pay someone else's subscription" flow exposed to us, but a private bank transfer between you handles the cash side). Gift-cards or sponsored-pay flows are not on the current roadmap.
Can I get an invoice for the annual payment for my accountant? Yes — Settings → Billing → Past invoices → download PDF. Stripe also auto-emails the invoice to your billing email at the moment of payment. The PDF includes your VAT ID (if set), reverse-charge clause (if applicable), and our company details.
I forgot the renewal date and got auto-charged. That's what the 30-day reminder is for. If it landed in spam or you missed it, you've been charged for another year. The renewal is non-refundable for change-of-mind, but if you genuinely had no way to see the reminder (email change, account access lost) write to [email protected] with [BILLING] and we'll evaluate.
Is the 17% saving the same on every plan? Yes — it's "10 months for the price of 12", consistent across Starter / Business / Growth. The absolute saving is larger on higher plans (€258/year on Growth vs €58/year on Starter), but the percentage is the same.
Can I pay yearly but spread across quarterly invoices? Not currently. Annual is one upfront charge; monthly is 12 charges. Quarterly is on the backlog but unscheduled — write to [email protected] if quarterly is a hard requirement for your accounting setup.
Related
- Switch or cancel your plan — the broader plan-change context
- Prorated billing when you upgrade mid-month — the math when you switch mid-cycle
- VAT reverse charge for EU businesses — applies the same to annual and monthly
- Understanding your document counter — the usage driver behind the cycle choice