diff --git a/packages/backend/src/db/migrations/20230411203412_add_cancellation_effective_date_to_subscriptions.ts b/packages/backend/src/db/migrations/20230411203412_add_cancellation_effective_date_to_subscriptions.ts
new file mode 100644
index 00000000..dc9ee247
--- /dev/null
+++ b/packages/backend/src/db/migrations/20230411203412_add_cancellation_effective_date_to_subscriptions.ts
@@ -0,0 +1,18 @@
+import { Knex } from 'knex';
+import appConfig from '../../config/app';
+
+export async function up(knex: Knex): Promise<void> {
+  if (!appConfig.isCloud) return;
+
+  return knex.schema.table('subscriptions', (table) => {
+    table.date('cancellation_effective_date');
+  });
+}
+
+export async function down(knex: Knex): Promise<void> {
+  if (!appConfig.isCloud) return;
+
+  return knex.schema.table('subscriptions', (table) => {
+    table.dropColumn('cancellation_effective_date');
+  });
+}
diff --git a/packages/backend/src/helpers/billing/webhooks.ee.ts b/packages/backend/src/helpers/billing/webhooks.ee.ts
index b9556d42..78e2fa60 100644
--- a/packages/backend/src/helpers/billing/webhooks.ee.ts
+++ b/packages/backend/src/helpers/billing/webhooks.ee.ts
@@ -3,13 +3,16 @@ import Subscription from '../../models/subscription.ee';
 import Billing from './index.ee';
 
 const handleSubscriptionCreated = async (request: IRequest) => {
-  const subscription = await Subscription.query().insertAndFetch(formatSubscription(request));
-  await subscription.$relatedQuery('usageData').insert(formatUsageData(request));
+  const subscription = await Subscription.query().insertAndFetch(
+    formatSubscription(request)
+  );
+  await subscription
+    .$relatedQuery('usageData')
+    .insert(formatUsageData(request));
 };
 
 const handleSubscriptionUpdated = async (request: IRequest) => {
-  await Subscription
-    .query()
+  await Subscription.query()
     .findOne({
       paddle_subscription_id: request.body.subscription_id,
     })
@@ -17,15 +20,15 @@ const handleSubscriptionUpdated = async (request: IRequest) => {
 };
 
 const handleSubscriptionCancelled = async (request: IRequest) => {
-  const subscription = await Subscription
-    .query()
-    .findOne({
-      paddle_subscription_id: request.body.subscription_id,
-    });
+  const subscription = await Subscription.query().findOne({
+    paddle_subscription_id: request.body.subscription_id,
+  });
 
   await subscription.$query().patchAndFetch(formatSubscription(request));
 
-  await subscription.$query().delete();
+  // Have a background job that deletes the subscription in cancellation effective date
+  // Architect in a way that it will behave as cron.
+  // await subscription.$query().delete();
 };
 
 const handleSubscriptionPaymentSucceeded = async (request: IRequest) => {
@@ -45,7 +48,9 @@ const handleSubscriptionPaymentSucceeded = async (request: IRequest) => {
     lastBillDate: remoteSubscription.last_payment.date,
   });
 
-  await subscription.$relatedQuery('usageData').insert(formatUsageData(request));
+  await subscription
+    .$relatedQuery('usageData')
+    .insert(formatUsageData(request));
 };
 
 const formatSubscription = (request: IRequest) => {
@@ -58,6 +63,7 @@ const formatSubscription = (request: IRequest) => {
     status: request.body.status,
     nextBillDate: request.body.next_bill_date,
     nextBillAmount: request.body.unit_price,
+    cancellationEffectiveDate: request.body.cancellation_effective_date,
   };
 };
 
diff --git a/packages/backend/src/models/subscription.ee.ts b/packages/backend/src/models/subscription.ee.ts
index 216e5e52..a8d9de60 100644
--- a/packages/backend/src/models/subscription.ee.ts
+++ b/packages/backend/src/models/subscription.ee.ts
@@ -14,6 +14,7 @@ class Subscription extends Base {
   nextBillAmount!: string;
   nextBillDate!: string;
   lastBillDate?: string;
+  cancellationEffectiveDate?: string;
   usageData?: UsageData[];
   currentUsageData?: UsageData;
 
@@ -43,6 +44,7 @@ class Subscription extends Base {
       nextBillAmount: { type: 'string' },
       nextBillDate: { type: 'string' },
       lastBillDate: { type: 'string' },
+      cancellationEffectiveDate: { type: 'string' },
     },
   };