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Manage billing on the ChatGPT Team subscription plan
Manage billing on the ChatGPT Team subscription plan

A guide explaining how billing works on the ChatGPT Team subscription tier.

Updated over a week ago

What is the minimum number of users on ChatGPT Team?

The ChatGPT Team subscription requires a minimum of 2 users.

What billing plans are available?

Two billing plans are available:

Flexible Plan (Monthly Subscription plan):

  • At the start of your billing month, you are charged for your baseline number of seats.

  • If you add extra seats above the baseline number during the month, these will be billed on a pro-rated basis and reflected on the next invoice.

  • At the beginning of each subsequent billing period, you are charged based on the current number of seats for the upcoming month.

  • Note: Only the seats exceeding your baseline are pro-rated. If the number of seats is reduced below the baseline during the month, the baseline will adjust to your new reduced baseline at your next monthly invoice date. However, you will still be billed for the baseline number of seats for the current billing month.

  • Example: A user buys 10 seats at a monthly price of $30, totaling $300. On day 10, they add 3 seats, now totaling 13 seats. On the next invoice, they are charged for the extra seats for the days used, plus the new total seats count for the next month, making a total of $450.

    • 13 seats * $30 monthly subscription price + 3 extra seats * 20 days used/30 days *$30 monthly subscription price = $390 + 60 = $450

Annual Plan (Annual Subscription plan, with true-ups calculated every month):

  • At the beginning of your billing year, you are charged for your baseline number of seats.

  • Throughout the year, if additional seats are added, they will be billed on a pro-rated basis at the end of each monthly true-up cycle. The charges for these additional seats will be reflected on the next invoice.

  • At the end of a monthly true-up cycle, you are charged for the extra seats above your baseline at a prorated annual rate, establishing a new baseline for the rest of the year.

  • True-ups: This process occurs monthly and involves reconciling the actual number of seats used with the number that has been billed. At the end of each month, the actual usage is calculated and invoices are issued for any additional usage above the baseline that was not previously billed.

    • Note: If you add 2x your current baseline or 20 seats in a month, you will get an instant invoice for a true-up even before the monthly cycle has been reached, resetting you to the new baseline. For example, if your baseline is 5 seats, but you add 10 users (which is 2x your baseline of 5), you will be sent an invoice immediately, and your baseline will be reset to 10. With a new baseline of 10, you could now add up to 20 seats.

  • Example: A user buys 5 seats at an annual price of $25 per seat, totaling $1,500. On day 10, they add 3 seats, now totaling 8 seats. On the next invoice, they are charged $875 total, covering the cost of the additional seats for the days used and the remainder of the year.

    • Invoice 1: 5 seats * $25 * 12 months = $1500

    • 1st Monthly true-up cycle: 20 days used /30 days * 3 seats above baseline * $25 monthly subscription + 3 seats above baseline * $25 monthly subscription price * 11 months remaining in annual plan

    • The owner removes 2 users from a workspace on the 20th day of Month 2. Nothing changes in the billing process since it is below the baseline.

Can I test out ChatGPT Team?

Currently, we do not offer a trial period. However, you can opt for our flexible plan, which allows you to try out ChatGPT Team on a month-to-month basis.

How do I manage my Billing information?

Billing management is facilitated through the Billing Info tab on your Workspace Settings page and can only be viewed by Owners. Here, you can:

  • View past invoices for your Team workspace

  • Change your credit card details, update billing information, or cancel plan via the Manage plan button

  • See the next invoice date/amount

  • See the amount of seats currently in use and how many are over the baseline

If you are over the baseline of the number of seats you’ve purchased, your billing section will show how many seats will be set as the new baseline before the end

Can I request a VAT exemption?

If you are located in a region that levies VAT, you have an option to self-identify as a business and enter your Tax ID at checkout. This will automatically exempt your ChatGPT Team subscription purchase from VAT, a status that will apply to all future invoices as well.

Can I change my monthly subscription plan to an annual subscription plan, or vice versa?

To switch to an annual billing plan for your ChatGPT Team subscription, you'll need to first cancel your current monthly subscription. After canceling, please wait for your current subscription period to end. Once this period concludes, you can then re-activate your workspace to the annual plan.

Can I reduce the number of seats on my plan?

When you create your ChatGPT Team plan, you'll be given the option to specify how many seats you want to purchase. If you find that you no longer need as many seats, you don't need to make any changes. Simply leave those seats unclaimed and we'll adjust your invoice at the end of the billing period, taking into account any unused licenses.

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