Upgrade Business Standard to Business Premium license

Question

I'm considering to upgrade from a Business Standard license to a Business Premium license but want to prevent in being charged for both as our current Business Standard license has an end date december 1 2026. How to achieve this?

Answer 1

Hello @Bob van Dijk

Yes, you can upgrade from Microsoft 365 Business Standard to Business Premium before your current end date, and in most cases you should not be charged as if you are paying for two full subscriptions at the same time, as long as the change is done through the proper upgrade/ change plan process in the Microsoft 365 admin center.

The main thing here is how the upgrade is performed. If you use the Change plan/ Upgrade option from your existing Business Standard subscription, Microsoft explains that once the change is completed:

• Billing for the old subscription is turned off
• Billing for the new subscription is turned on
• And depending on your billing setup, you may receive a prorated credit for the unused portion of the old plan

Official article:

https://learn.microsoft.com/en-us/microsoft-365/commerce/subscriptions/upgrade-to-different-plan?view=o365-worldwide

The recommended path is to sign in to the Microsoft 365 admin center and go to: Billing > Your products > select your Business Standard subscription

If the option is available, choose Upgrade/ Change plan and then select Business Premium.

This is the safest method because it treats the action as a subscription change rather than a completely separate purchase.

One important thing to avoid is purchasing Business Premium as a brand-new standalone subscription unless you intentionally want both plans.

If Business Premium is purchased separately instead of using the upgrade path, it may temporarily appear that both subscriptions are active, which can cause confusion around billing until licenses are moved and the original subscription is canceled or reduced. Microsoft also notes that in some manual plan change scenarios, you may need to remove old licenses or cancel the previous subscription after users are moved.

Microsoft also confirms that switching from a qualifying Microsoft 365 plan to Business Premium is supported: https://learn.microsoft.com/en-us/microsoft-365/business-premium/microsoft-365-business-faqs?view=o365-worldwide

If after the upgrade you still notice billing that does not look correct, it would be best to contact Microsoft Billing Support directly from the admin center so they can review the tenant’s billing type and confirm whether any credit or invoice adjustment is still pending.

Hope my answer can fulfill your concerns.

Answer 2

To avoid being charged for both Microsoft 365 Business Standard and Microsoft 365 Business Premium, move users to the new Business Premium subscription and then remove or cancel the old Business Standard licenses after the move.

A safe sequence is:

1. Purchase Business Premium licenses
   • In the Microsoft 365 admin center, buy the required number of Microsoft 365 Business Premium licenses alongside the existing Business Standard subscription.
   • Ensure there are enough unassigned Business Premium licenses for all users that will be upgraded.
   • If more are needed, use the Your products page to select Business Premium and buy more licenses.
2. Move users from Business Standard to Business Premium
   • After the Business Premium subscription is active and has enough licenses, move users from the old subscription to the new one.
   • Each user should end up with only a Business Premium license assigned (not both plans at once).
3. Cancel or reduce Business Standard licenses
   • When all users have been moved, either:
     • Cancel the Business Standard subscription entirely if it is no longer needed, or
     • Reduce the number of Business Standard licenses to zero (or to the number still needed, if any users must remain on that plan).
   • This prevents further charges for unused Business Standard seats. Note that cancellation and refund/credit options depend on the billing account type and timing.

This approach ensures users are upgraded to Business Premium while avoiding ongoing charges for both plans once the migration is complete.

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References:

• Upgrade or change to a different Microsoft 365 for business plan
• Microsoft 365 Business Premium frequently asked questions
• Which Microsoft 365 plan is right for your business?