diff --git a/src/Core/Billing/Extensions/CustomerExtensions.cs b/src/Core/Billing/Extensions/CustomerExtensions.cs
index 1ab595342e..979f99a495 100644
--- a/src/Core/Billing/Extensions/CustomerExtensions.cs
+++ b/src/Core/Billing/Extensions/CustomerExtensions.cs
@@ -5,23 +5,13 @@ namespace Bit.Core.Billing.Extensions;
 
 public static class CustomerExtensions
 {
-    public static bool HasBillingLocation(this Customer customer)
-        => customer is
-        {
-            Address:
-            {
-                Country: not null and not "",
-                PostalCode: not null and not ""
-            }
-        };
-
     /// <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;
+        customer?.Tax?.AutomaticTax != StripeConstants.AutomaticTaxStatus.UnrecognizedLocation;
 
     public static decimal GetBillingBalance(this Customer customer)
     {
diff --git a/src/Core/Billing/Services/Implementations/AutomaticTax/IndividualAutomaticTaxStrategy.cs b/src/Core/Billing/Services/Implementations/AutomaticTax/IndividualAutomaticTaxStrategy.cs
index b0bc63c150..6e3a69cadb 100644
--- a/src/Core/Billing/Services/Implementations/AutomaticTax/IndividualAutomaticTaxStrategy.cs
+++ b/src/Core/Billing/Services/Implementations/AutomaticTax/IndividualAutomaticTaxStrategy.cs
@@ -1,4 +1,4 @@
-using Bit.Core.Billing.Constants;
+using Bit.Core.Billing.Extensions;
 using Stripe;
 
 namespace Bit.Core.Billing.Services.Implementations.AutomaticTax;
@@ -20,14 +20,8 @@ public class IndividualAutomaticTaxStrategy : IIndividualAutomaticTaxStrategy
 
     public Task SetUpdateOptionsAsync(SubscriptionUpdateOptions options, Subscription subscription)
     {
-
         ArgumentNullException.ThrowIfNull(options);
 
-        if (subscription.AutomaticTax.Enabled == ShouldEnable(subscription.Customer))
-        {
-            return Task.CompletedTask;
-        }
-
         options.AutomaticTax = new SubscriptionAutomaticTaxOptions
         {
             Enabled = ShouldEnable(subscription.Customer)
@@ -58,6 +52,6 @@ public class IndividualAutomaticTaxStrategy : IIndividualAutomaticTaxStrategy
 
     private static bool ShouldEnable(Customer customer)
     {
-        return customer.Tax?.AutomaticTax == StripeConstants.AutomaticTaxStatus.Supported;
+        return customer.HasTaxLocationVerified();
     }
 }
diff --git a/src/Core/Billing/Services/Implementations/AutomaticTax/OrganizationAutomaticTaxStrategy.cs b/src/Core/Billing/Services/Implementations/AutomaticTax/OrganizationAutomaticTaxStrategy.cs
index be97337e8f..a07dfd5653 100644
--- a/src/Core/Billing/Services/Implementations/AutomaticTax/OrganizationAutomaticTaxStrategy.cs
+++ b/src/Core/Billing/Services/Implementations/AutomaticTax/OrganizationAutomaticTaxStrategy.cs
@@ -74,8 +74,13 @@ public class OrganizationAutomaticTaxStrategy(
 
     private async Task<bool?> IsEnabledAsync(Subscription subscription)
     {
+        if (!subscription.Customer.HasTaxLocationVerified())
+        {
+            return false;
+        }
+
         bool shouldBeEnabled;
-        if (subscription.Customer.HasBillingLocation() && subscription.Customer.Address.Country == "US")
+        if (subscription.Customer.Address.Country == "US")
         {
             shouldBeEnabled = true;
         }
@@ -95,7 +100,12 @@ public class OrganizationAutomaticTaxStrategy(
 
     private async Task<bool?> IsEnabledAsync(SubscriptionCreateOptions options, Customer customer)
     {
-        if (customer.HasBillingLocation() && customer.Address.Country == "US")
+        if (!customer.HasTaxLocationVerified())
+        {
+            return false;
+        }
+
+        if (customer.Address.Country == "US")
         {
             return true;
         }