diff --git a/service/src/main/java/org/whispersystems/textsecuregcm/subscriptions/GooglePlayBillingManager.java b/service/src/main/java/org/whispersystems/textsecuregcm/subscriptions/GooglePlayBillingManager.java
index 26dd11dd0..e2a00d113 100644
--- a/service/src/main/java/org/whispersystems/textsecuregcm/subscriptions/GooglePlayBillingManager.java
+++ b/service/src/main/java/org/whispersystems/textsecuregcm/subscriptions/GooglePlayBillingManager.java
@@ -169,11 +169,13 @@ public class GooglePlayBillingManager implements SubscriptionPaymentProcessor {
 
       Metrics.counter(VALIDATE_COUNTER_NAME, subscriptionTags(subscription)).increment();
 
-      // We only ever acknowledge valid tokens. There are cases where a subscription was once valid and then was
-      // cancelled, so the user could still be entitled to their purchase. However, if we never acknowledge it, the
-      // user's charge will eventually be refunded anyway. See
-      // https://developer.android.com/google/play/billing/integrate#pending
-      if (state != SubscriptionState.ACTIVE) {
+      // We only accept tokens in a state where the user may be entitled to their purchase. This is true even in the
+      // CANCELLED state. For example, a user may subscribe for 1 month, then immediately cancel (disabling auto-renew)
+      // and then submit their token. In this case they should still be able to retrieve their entitlement.
+      // See https://developer.android.com/google/play/billing/integrate#life
+      if (state != SubscriptionState.ACTIVE
+          && state != SubscriptionState.IN_GRACE_PERIOD
+          && state != SubscriptionState.CANCELED) {
         throw ExceptionUtils.wrap(new SubscriptionException.PaymentRequired(
             "Cannot acknowledge purchase for subscription in state " + subscription.getSubscriptionState()));
       }
diff --git a/service/src/test/java/org/whispersystems/textsecuregcm/subscriptions/GooglePlayBillingManagerTest.java b/service/src/test/java/org/whispersystems/textsecuregcm/subscriptions/GooglePlayBillingManagerTest.java
index 6179f034f..dd36b2155 100644
--- a/service/src/test/java/org/whispersystems/textsecuregcm/subscriptions/GooglePlayBillingManagerTest.java
+++ b/service/src/test/java/org/whispersystems/textsecuregcm/subscriptions/GooglePlayBillingManagerTest.java
@@ -31,6 +31,7 @@ import java.time.Duration;
 import java.time.Instant;
 import java.util.List;
 import java.util.Map;
+import java.util.concurrent.CompletableFuture;
 import java.util.concurrent.ExecutorService;
 import java.util.concurrent.Executors;
 import java.util.concurrent.TimeUnit;
@@ -133,7 +134,7 @@ class GooglePlayBillingManagerTest {
   }
 
   @ParameterizedTest
-  @EnumSource(mode = EnumSource.Mode.EXCLUDE, names = {"ACTIVE"})
+  @EnumSource
   public void rejectInactivePurchase(GooglePlayBillingManager.SubscriptionState subscriptionState) throws IOException {
     when(subscriptionsv2Get.execute()).thenReturn(new SubscriptionPurchaseV2()
         .setAcknowledgementState(GooglePlayBillingManager.AcknowledgementState.PENDING.apiString())
@@ -142,9 +143,12 @@ class GooglePlayBillingManagerTest {
             .setExpiryTime(Instant.now().plus(Duration.ofDays(1)).toString())
             .setProductId(PRODUCT_ID))));
 
-    CompletableFutureTestUtil.assertFailsWithCause(
-        SubscriptionException.PaymentRequired.class,
-        googlePlayBillingManager.validateToken(PURCHASE_TOKEN));
+    final CompletableFuture<GooglePlayBillingManager.ValidatedToken> future = googlePlayBillingManager
+        .validateToken(PURCHASE_TOKEN);
+    switch (subscriptionState) {
+      case ACTIVE, IN_GRACE_PERIOD, CANCELED -> assertThatNoException().isThrownBy(() -> future.join());
+      default -> CompletableFutureTestUtil.assertFailsWithCause(SubscriptionException.PaymentRequired.class, future);
+    }
   }
 
   @Test