we are using stripe java APIs for creating subscriptions in our application. There are yearly subscriptions and monthly subscriptions. I have to add a coupon for those subscriptions for only the first payment. That coupon is created during the payment process programmatically. When I add that coupon to the subscription, it reduces the relevant amount only from yearly subscriptions. In monthly subscriptions, it is reducing tax from the coupon discount and the balance amount will be reduced from the subscription payment.
As an example, I have a yearly subscription of $150. When I add a coupon discount of $12. It will cost only $138. But in monthly subscriptions, It will reduce only $10.8. because it will charge 9.5% of the discount amount. My tax value is 9.5%.
My problem is, Is that the expected behavior, or is there any way to reduce the $12 without reducing the tax from the discount amount?
That depends on whether or not you have inclusive or exclusive tax configured. See this section in the docs.