diff --git a/app/assets/javascripts/persistent_user_callouts.js b/app/assets/javascripts/persistent_user_callouts.js
index 100ffc0664b4738f4f8fcfbd96866299be4059af..31e80107fd8c0fc40334b522ece96e7d066762a0 100644
--- a/app/assets/javascripts/persistent_user_callouts.js
+++ b/app/assets/javascripts/persistent_user_callouts.js
@@ -10,7 +10,7 @@ const PERSISTENT_USER_CALLOUTS = [
   '.js-new-user-signups-cap-reached',
   '.js-eoa-bronze-plan-banner',
   '.js-security-newsletter-callout',
-  '.js-approaching-seats-count-threshold',
+  '.js-approaching-seat-count-threshold',
   '.js-storage-enforcement-banner',
   '.js-user-over-limit-free-plan-alert',
   '.js-minute-limit-banner',
diff --git a/app/views/layouts/_page.html.haml b/app/views/layouts/_page.html.haml
index 185ed228d92e603ca85165ca2d33c4cc4d868232..b7cf7b7468fe49a7e812fda1bb353be69d10ac63 100644
--- a/app/views/layouts/_page.html.haml
+++ b/app/views/layouts/_page.html.haml
@@ -16,7 +16,7 @@
       = yield :flash_message
       = dispensable_render "shared/service_ping_consent"
       = dispensable_render_if_exists "layouts/header/ee_subscribable_banner"
-      = dispensable_render_if_exists "layouts/header/seats_count_alert"
+      = dispensable_render_if_exists "layouts/header/seat_count_alert"
       = dispensable_render_if_exists "shared/namespace_storage_limit_alert"
       = dispensable_render_if_exists "shared/namespace_user_cap_reached_alert"
       = dispensable_render_if_exists "shared/new_user_signups_cap_reached_alert"
diff --git a/config/feature_flags/development/seat_count_alerts.yml b/config/feature_flags/development/seat_count_alerts.yml
new file mode 100644
index 0000000000000000000000000000000000000000..3b05f391cbce96f3b8d35d05e4320362bd18f65a
--- /dev/null
+++ b/config/feature_flags/development/seat_count_alerts.yml
@@ -0,0 +1,8 @@
+---
+name: seat_count_alerts
+introduced_by_url: https://gitlab.com/gitlab-org/gitlab/-/merge_requests/79563
+rollout_issue_url: https://gitlab.com/gitlab-org/gitlab/-/issues/362041
+milestone: '15.1'
+type: development
+group: group::purchase
+default_enabled: false
diff --git a/ee/app/controllers/concerns/gitlab_subscriptions/seat_count_alert.rb b/ee/app/controllers/concerns/gitlab_subscriptions/seat_count_alert.rb
new file mode 100644
index 0000000000000000000000000000000000000000..e3eb77351a1bf8b8f716bf6049e2b2f68fed2392
--- /dev/null
+++ b/ee/app/controllers/concerns/gitlab_subscriptions/seat_count_alert.rb
@@ -0,0 +1,15 @@
+# frozen_string_literal: true
+
+module GitlabSubscriptions
+  module SeatCountAlert
+    def generate_seat_count_alert_data(namespace)
+      return unless current_user && (root_ancestor = namespace&.root_ancestor)
+      return if Feature.disabled?(:seat_count_alerts, root_ancestor)
+
+      GitlabSubscriptions::Reconciliations::CalculateSeatCountDataService.new(
+        namespace: root_ancestor,
+        user: current_user
+      ).execute
+    end
+  end
+end
diff --git a/ee/app/controllers/ee/groups_controller.rb b/ee/app/controllers/ee/groups_controller.rb
index 2fe797b1b913feb42670eefbe65205c66c0b23b7..249e5772ef6f7bdabbdf0e072f1b4aabb6ea2da9 100644
--- a/ee/app/controllers/ee/groups_controller.rb
+++ b/ee/app/controllers/ee/groups_controller.rb
@@ -9,6 +9,7 @@ module GroupsController
 
     prepended do
       include GeoInstrumentation
+      include GitlabSubscriptions::SeatCountAlert
 
       alias_method :ee_authorize_admin_group!, :authorize_admin_group!
 
@@ -20,6 +21,10 @@ module GroupsController
         push_force_frontend_feature_flag(:iteration_cadences, @group&.iteration_cadences_feature_flag_enabled?)
       end
 
+      before_action only: :show do
+        @seat_count_data = generate_seat_count_alert_data(@group)
+      end
+
       feature_category :subgroups, [:restore]
     end
 
diff --git a/ee/app/controllers/ee/projects/issues_controller.rb b/ee/app/controllers/ee/projects/issues_controller.rb
index dba106abe5d13cce0b07e2a7b7cfbfa8fb0a66c6..afed9e89409ed90eaffa32945adc154b778db6e9 100644
--- a/ee/app/controllers/ee/projects/issues_controller.rb
+++ b/ee/app/controllers/ee/projects/issues_controller.rb
@@ -9,6 +9,7 @@ module IssuesController
       prepended do
         include DescriptionDiffActions
         include GeoInstrumentation
+        include GitlabSubscriptions::SeatCountAlert
 
         before_action :disable_query_limiting_ee, only: [:update]
         before_action only: [:new, :create] do
@@ -28,6 +29,10 @@ module IssuesController
           )
         end
 
+        before_action only: %i[show index] do
+          @seat_count_data = generate_seat_count_alert_data(@project)
+        end
+
         feature_category :team_planning, [:delete_description_version, :description_diff]
         urgency :low, [:delete_description_version, :description_diff]
       end
diff --git a/ee/app/controllers/ee/projects_controller.rb b/ee/app/controllers/ee/projects_controller.rb
index 927663fb20301b55a748936037c539d6596e1f3b..082a2e6c3513dd1392bf1ba0b8b4dc4b95c61fa2 100644
--- a/ee/app/controllers/ee/projects_controller.rb
+++ b/ee/app/controllers/ee/projects_controller.rb
@@ -7,6 +7,7 @@ module ProjectsController
 
     prepended do
       include GeoInstrumentation
+      include GitlabSubscriptions::SeatCountAlert
 
       before_action :log_download_export_audit_event, only: [:download_export]
       before_action :log_archive_audit_event, only: [:archive]
@@ -16,6 +17,10 @@ module ProjectsController
         push_frontend_feature_flag(:permit_all_shared_groups_for_approval, project)
       end
 
+      before_action only: :show do
+        @seat_count_data = generate_seat_count_alert_data(@project)
+      end
+
       feature_category :projects, [:restore]
     end
 
diff --git a/ee/app/controllers/groups/billings_controller.rb b/ee/app/controllers/groups/billings_controller.rb
index 013871be9911c59df90023c3b0fe3de308c3bf64..ee89f10b76f48b34f383bee2f268e107204957ca 100644
--- a/ee/app/controllers/groups/billings_controller.rb
+++ b/ee/app/controllers/groups/billings_controller.rb
@@ -1,6 +1,8 @@
 # frozen_string_literal: true
 
 class Groups::BillingsController < Groups::ApplicationController
+  include GitlabSubscriptions::SeatCountAlert
+
   before_action :authorize_admin_group!
   before_action :verify_namespace_plan_check_enabled
 
@@ -8,6 +10,10 @@ class Groups::BillingsController < Groups::ApplicationController
     push_frontend_feature_flag(:refresh_billings_seats, type: :ops)
   end
 
+  before_action only: :index do
+    @seat_count_data = generate_seat_count_alert_data(@group)
+  end
+
   layout 'group_settings'
 
   feature_category :purchase
diff --git a/ee/app/controllers/groups/usage_quotas_controller.rb b/ee/app/controllers/groups/usage_quotas_controller.rb
index 4c05f1b1d1805e48ea0635218ec1fff6cbe52f9b..292585fcb6eff9eb13da1ebe2234155d0b66a49b 100644
--- a/ee/app/controllers/groups/usage_quotas_controller.rb
+++ b/ee/app/controllers/groups/usage_quotas_controller.rb
@@ -2,6 +2,7 @@
 
 class Groups::UsageQuotasController < Groups::ApplicationController
   include OneTrustCSP
+  include GitlabSubscriptions::SeatCountAlert
 
   before_action :authorize_admin_group!
   before_action :verify_usage_quotas_enabled!
@@ -9,6 +10,10 @@ class Groups::UsageQuotasController < Groups::ApplicationController
   before_action :push_update_storage_usage_design, only: :index
   before_action :push_usage_quotas_pipelines_vue, only: :index
 
+  before_action only: [:index] do
+    @seat_count_data = generate_seat_count_alert_data(@group)
+  end
+
   layout 'group_settings'
 
   feature_category :purchase
diff --git a/ee/app/helpers/seat_count_alert_helper.rb b/ee/app/helpers/seat_count_alert_helper.rb
new file mode 100644
index 0000000000000000000000000000000000000000..3f92bf4de1cc1eb8a7ab0689e00b8c548c33dc46
--- /dev/null
+++ b/ee/app/helpers/seat_count_alert_helper.rb
@@ -0,0 +1,19 @@
+# frozen_string_literal: true
+
+module SeatCountAlertHelper
+  def show_seat_count_alert?
+    @seat_count_data.present? && @seat_count_data[:namespace].present?
+  end
+
+  def remaining_seat_count
+    @seat_count_data[:remaining_seat_count]
+  end
+
+  def total_seat_count
+    @seat_count_data[:total_seat_count]
+  end
+
+  def namespace
+    @seat_count_data[:namespace]
+  end
+end
diff --git a/ee/app/helpers/seats_count_alert_helper.rb b/ee/app/helpers/seats_count_alert_helper.rb
deleted file mode 100644
index 8b58f163de743135f9dfce2562c976e6991ff3c9..0000000000000000000000000000000000000000
--- a/ee/app/helpers/seats_count_alert_helper.rb
+++ /dev/null
@@ -1,72 +0,0 @@
-# frozen_string_literal: true
-
-module SeatsCountAlertHelper
-  def display_seats_count_alert!
-    @display_seats_count_alert = true
-  end
-
-  def learn_more_link
-    link_to _('Learn more.'), help_page_path('subscriptions/quarterly_reconciliation'), target: '_blank', rel: 'noopener noreferrer'
-  end
-
-  def group_name
-    root_namespace&.name
-  end
-
-  def remaining_seats_count
-    return unless total_seats_count && seats_in_use
-
-    total_seats_count - seats_in_use
-  end
-
-  def seats_usage_link
-    return unless root_namespace
-
-    link_to _('View seat usage'), current_usage_quotas_path, class: 'btn gl-alert-action btn-info btn-md gl-button'
-  end
-
-  def show_seats_count_alert?
-    return false unless ::Gitlab.com? && group_with_owner? && current_subscription
-    return false if user_dismissed_alert?
-
-    !!@display_seats_count_alert
-  end
-
-  def total_seats_count
-    current_subscription&.seats
-  end
-
-  private
-
-  def user_dismissed_alert?
-    current_user.dismissed_callout_for_group?(
-      feature_name: Users::GroupCalloutsHelper::APPROACHING_SEAT_COUNT_THRESHOLD,
-      group: root_namespace,
-      ignore_dismissal_earlier_than: last_member_added_at
-    )
-  end
-
-  def last_member_added_at
-    root_namespace&.last_billed_user_created_at
-  end
-
-  def group_with_owner?
-    root_namespace&.group_namespace? && root_namespace&.has_owner?(current_user)
-  end
-
-  def root_namespace
-    @project&.root_ancestor || @group&.root_ancestor
-  end
-
-  def current_subscription
-    root_namespace&.gitlab_subscription
-  end
-
-  def seats_in_use
-    current_subscription&.seats_in_use
-  end
-
-  def current_usage_quotas_path
-    usage_quotas_path(root_namespace, anchor: 'seats-quota-tab')
-  end
-end
diff --git a/ee/app/services/gitlab_subscriptions/reconciliations/calculate_seat_count_data_service.rb b/ee/app/services/gitlab_subscriptions/reconciliations/calculate_seat_count_data_service.rb
index 0ecefdf6ec053b133eafab69793056e2a5200217..750f4714209ea41770814db2c49da2da04372ef5 100644
--- a/ee/app/services/gitlab_subscriptions/reconciliations/calculate_seat_count_data_service.rb
+++ b/ee/app/services/gitlab_subscriptions/reconciliations/calculate_seat_count_data_service.rb
@@ -26,7 +26,7 @@ def initialize(namespace:, user:)
 
       def execute
         return unless owner_of_paid_group? && seat_count_threshold_reached?
-        return if user_dismissed_alert?
+        return if max_seats_used_changed_at.nil? || user_dismissed_alert?
         return unless alert_user_overage?
 
         {
diff --git a/ee/app/views/layouts/header/_seat_count_alert.html.haml b/ee/app/views/layouts/header/_seat_count_alert.html.haml
new file mode 100644
index 0000000000000000000000000000000000000000..721c49ef0296d4ce8b8dc4fe3f5d51d9f15fb35a
--- /dev/null
+++ b/ee/app/views/layouts/header/_seat_count_alert.html.haml
@@ -0,0 +1,15 @@
+- return unless show_seat_count_alert?
+
+.container.container-limited.pt-3
+  = render Pajamas::AlertComponent.new(alert_class: 'js-approaching-seat-count-threshold',
+    alert_data: { dismiss_endpoint: group_callouts_path,
+                  feature_id: Users::GroupCalloutsHelper::APPROACHING_SEAT_COUNT_THRESHOLD,
+                  group_id: namespace.id },
+    title: _('%{group_name} is approaching the limit of available seats') % { group_name: namespace.name },
+    close_button_data: { testid: 'approaching-seat-count-threshold-alert-dismiss' }) do |c|
+    = c.body do
+      = n_('Your subscription has %{remaining_seat_count} out of %{total_seat_count} seat remaining.', 'Your subscription has %{remaining_seat_count} out of %{total_seat_count} seats remaining.', total_seat_count) % { remaining_seat_count: remaining_seat_count, total_seat_count: total_seat_count }
+      = _('Even if you reach the number of seats in your subscription, you can continue to add users, and GitLab will bill you for the overage.')
+      = link_to _('Learn more.'), help_page_path('subscriptions/quarterly_reconciliation'), target: '_blank', rel: 'noopener noreferrer'
+    = c.actions do
+      = link_to _('View seat usage'), usage_quotas_path(namespace, anchor: 'seats-quota-tab'), class: 'btn gl-alert-action btn-info btn-md gl-button'
diff --git a/ee/app/views/layouts/header/_seats_count_alert.html.haml b/ee/app/views/layouts/header/_seats_count_alert.html.haml
deleted file mode 100644
index db4cb0fbb33500d504550273f8a9d9e4f0d5e198..0000000000000000000000000000000000000000
--- a/ee/app/views/layouts/header/_seats_count_alert.html.haml
+++ /dev/null
@@ -1,13 +0,0 @@
-- return unless show_seats_count_alert?
-.container.container-limited.pt-3
-  = render Pajamas::AlertComponent.new(alert_class: 'js-approaching-seats-count-threshold',
-    alert_data: { dismiss_endpoint: group_callouts_path,
-                  feature_id: Users::GroupCalloutsHelper::APPROACHING_SEAT_COUNT_THRESHOLD,
-                  group_id: root_namespace.id },
-    title: _('%{group_name} is approaching the limit of available seats') % { group_name: group_name },
-    close_button_data: { testid: 'approaching-seats-count-threshold-alert-dismiss' }) do |c|
-    = c.body do
-      = _('Your subscription has %{remaining_seats_count} out of %{total_seats_count} seats remaining. Even if you reach the number of seats in your subscription, you can continue to add users, and GitLab will bill you for the overage.') % { remaining_seats_count: remaining_seats_count, total_seats_count: total_seats_count }
-      = learn_more_link
-    = c.actions do
-      = seats_usage_link
diff --git a/ee/spec/controllers/concerns/gitlab_subscriptions/seat_count_alert_spec.rb b/ee/spec/controllers/concerns/gitlab_subscriptions/seat_count_alert_spec.rb
new file mode 100644
index 0000000000000000000000000000000000000000..f304ff26945c0d5a52529c050cc2d78992ac444b
--- /dev/null
+++ b/ee/spec/controllers/concerns/gitlab_subscriptions/seat_count_alert_spec.rb
@@ -0,0 +1,90 @@
+# frozen_string_literal: true
+
+require 'spec_helper'
+
+RSpec.describe GitlabSubscriptions::SeatCountAlert do
+  controller(ActionController::Base) do
+    include GitlabSubscriptions::SeatCountAlert
+  end
+
+  let_it_be(:user) { create(:user) }
+  let_it_be(:root_ancestor) { create(:group) }
+
+  describe '#generate_seat_count_alert_data' do
+    let(:response_data) do
+      { namespace: root_ancestor, remaining_seat_count: 5, seats_in_use: 5, total_seat_count: 10 }
+    end
+
+    context 'when the user is not authenticated' do
+      it 'does not set the seat count data' do
+        expect(controller.generate_seat_count_alert_data(root_ancestor)).to be_nil
+      end
+    end
+
+    context 'when the user is authenticated' do
+      before do
+        sign_in(user)
+      end
+
+      context 'when the namespace is nil' do
+        it 'does not set the seat count data' do
+          expect(controller.generate_seat_count_alert_data(nil)).to be_nil
+        end
+      end
+
+      context 'when the feature flag is disabled' do
+        it 'does not set the seat count data' do
+          stub_feature_flags(seat_count_alerts: false)
+
+          expect(controller.generate_seat_count_alert_data(root_ancestor)).to be_nil
+        end
+      end
+
+      context 'when supplied a project' do
+        it 'sets the data based on the root ancestor' do
+          project = build(:project, namespace: root_ancestor)
+
+          expect_next_instance_of(
+            GitlabSubscriptions::Reconciliations::CalculateSeatCountDataService,
+            namespace: root_ancestor,
+            user: user
+          ) do |service|
+            expect(service).to receive(:execute).and_return(response_data)
+          end
+
+          expect(controller.generate_seat_count_alert_data(project)).to eq response_data
+        end
+      end
+
+      context 'when supplied a top level group' do
+        it 'sets the data based on that group' do
+          expect_next_instance_of(
+            GitlabSubscriptions::Reconciliations::CalculateSeatCountDataService,
+            namespace: root_ancestor,
+            user: user
+          ) do |service|
+            expect(service).to receive(:execute).and_return(response_data)
+          end
+
+          expect(controller.generate_seat_count_alert_data(root_ancestor)).to eq response_data
+        end
+      end
+
+      context 'when supplied a subgroup' do
+        it 'sets the data based on the root ancestor' do
+          subgroup = build(:group, parent: root_ancestor)
+
+          expect_next_instance_of(
+            GitlabSubscriptions::Reconciliations::CalculateSeatCountDataService,
+            namespace: root_ancestor,
+            user: user
+          ) do |service|
+            expect(service).to receive(:execute).and_return(response_data)
+          end
+
+          expect(controller.generate_seat_count_alert_data(subgroup)).to eq response_data
+        end
+      end
+    end
+  end
+end
diff --git a/ee/spec/controllers/ee/groups_controller_spec.rb b/ee/spec/controllers/ee/groups_controller_spec.rb
index 6509ae8e7316dcfb74162bc0f965b77ab735033f..ee631cc9af5d8fd90202b4d644e88f89a6a85d6d 100644
--- a/ee/spec/controllers/ee/groups_controller_spec.rb
+++ b/ee/spec/controllers/ee/groups_controller_spec.rb
@@ -17,7 +17,15 @@
 
     subject { get :show, params: { id: group.to_param } }
 
+    before do
+      namespace.add_owner(user)
+
+      sign_in(user)
+    end
+
     it_behaves_like 'namespace storage limit alert'
+
+    it_behaves_like 'seat count alert'
   end
 
   describe 'GET #activity' do
diff --git a/ee/spec/controllers/groups/billings_controller_spec.rb b/ee/spec/controllers/groups/billings_controller_spec.rb
index 70b46ea626268c301b79ed6577c4db1f5358821b..71bbddcfa5d581d7a6ffb19f709ad107fc227141 100644
--- a/ee/spec/controllers/groups/billings_controller_spec.rb
+++ b/ee/spec/controllers/groups/billings_controller_spec.rb
@@ -50,6 +50,12 @@ def get_index
         expect(assigns(:plans_data)).to eq(data)
       end
 
+      it_behaves_like 'seat count alert' do
+        subject { get_index }
+
+        let(:namespace) { group }
+      end
+
       context 'when CustomersDot is unavailable' do
         before do
           allow_next_instance_of(GitlabSubscriptions::FetchSubscriptionPlansService) do |instance|
diff --git a/ee/spec/controllers/groups/usage_quotas_controller_spec.rb b/ee/spec/controllers/groups/usage_quotas_controller_spec.rb
index f0a4fba0f8ffa518ea8dcd5caad414f4973f2522..afb3e64e46773eefb02e94eace88c9c004ec0898 100644
--- a/ee/spec/controllers/groups/usage_quotas_controller_spec.rb
+++ b/ee/spec/controllers/groups/usage_quotas_controller_spec.rb
@@ -31,6 +31,14 @@
     end
   end
 
+  describe 'GET #index' do
+    it_behaves_like 'seat count alert' do
+      subject { get :index, params: { group_id: group } }
+
+      let(:namespace) { group }
+    end
+  end
+
   describe 'GET #pending_members' do
     let(:feature_available) { true }
 
diff --git a/ee/spec/controllers/projects_controller_spec.rb b/ee/spec/controllers/projects_controller_spec.rb
index 225cee28534e6926db1216001d6b61612514ffe3..0a685533523ed5638a8374460a45fb8e496aaa88 100644
--- a/ee/spec/controllers/projects_controller_spec.rb
+++ b/ee/spec/controllers/projects_controller_spec.rb
@@ -104,6 +104,8 @@
       end
 
       it_behaves_like 'namespace storage limit alert'
+
+      it_behaves_like 'seat count alert'
     end
   end
 
diff --git a/ee/spec/features/gitlab_subscriptions/seat_count_alert_spec.rb b/ee/spec/features/gitlab_subscriptions/seat_count_alert_spec.rb
new file mode 100644
index 0000000000000000000000000000000000000000..b87f862a2e5497732634301a2d71b241f87246ea
--- /dev/null
+++ b/ee/spec/features/gitlab_subscriptions/seat_count_alert_spec.rb
@@ -0,0 +1,128 @@
+# frozen_string_literal: true
+
+require 'spec_helper'
+
+RSpec.describe 'approaching seat count threshold alert', :saas, :js do
+  include SubscriptionPortalHelpers
+
+  let_it_be(:user) { create(:user) }
+  let_it_be(:group) { create(:group) }
+  let_it_be(:project) { create(:project, namespace: group) }
+
+  let_it_be(:gitlab_subscription) do
+    create(
+      :gitlab_subscription,
+      namespace: group,
+      plan_code: Plan::ULTIMATE,
+      seats: 20,
+      max_seats_used: 18,
+      max_seats_used_changed_at: 1.day.ago
+    )
+  end
+
+  before do
+    stub_ee_application_setting(should_check_namespace_plan: true)
+
+    stub_subscription_request_seat_usage(true)
+  end
+
+  shared_examples 'a hidden alert' do
+    it 'does not appear on the group page' do
+      visit group_path(group)
+
+      expect_alert_to_be_hidden
+    end
+
+    it 'does not appear on the project page' do
+      visit project_path(project)
+
+      expect_alert_to_be_hidden
+    end
+  end
+
+  context 'when the user is not authenticated' do
+    before do
+      group.add_owner(user)
+    end
+
+    it_behaves_like 'a hidden alert'
+  end
+
+  context 'user is not eligible for the alert' do
+    before do
+      group.add_developer(user)
+
+      sign_in(user)
+    end
+
+    it_behaves_like 'a hidden alert'
+  end
+
+  context 'when the feature flag is disabled' do
+    before do
+      group.add_owner(user)
+      sign_in(user)
+
+      stub_feature_flags(seat_count_alerts: false)
+    end
+
+    it_behaves_like 'a hidden alert'
+  end
+
+  context 'when the user is eligible for the alert' do
+    before do
+      group.add_owner(user)
+
+      sign_in(user)
+    end
+
+    it 'shows the dismissible alert on the group page' do
+      visit group_path(group)
+
+      expect(page).to have_content("#{group.name} is approaching the limit of available seats")
+      expect(page)
+        .to have_content(
+          "Your subscription has #{gitlab_subscription.seats - gitlab_subscription.max_seats_used} out of" \
+          " #{gitlab_subscription.seats} seats remaining."
+        )
+      expect(page).to have_link('View seat usage', href: usage_quotas_path(group, anchor: 'seats-quota-tab'))
+
+      find('[data-testid="approaching-seat-count-threshold-alert-dismiss"]').click
+
+      expect_alert_to_be_hidden
+
+      wait_for_requests
+      # reload the page to ensure it stays dismissed
+      visit group_path(group)
+
+      expect_alert_to_be_hidden
+    end
+
+    it 'shows the dismissible alert on the project page' do
+      visit project_path(project)
+
+      expect(page).to have_content("#{group.name} is approaching the limit of available seats")
+      expect(page)
+        .to have_content(
+          "Your subscription has #{gitlab_subscription.seats - gitlab_subscription.max_seats_used} out of" \
+          " #{gitlab_subscription.seats} seats remaining."
+        )
+      expect(page).to have_link('View seat usage', href: usage_quotas_path(group, anchor: 'seats-quota-tab'))
+
+      find('[data-testid="approaching-seat-count-threshold-alert-dismiss"]').click
+
+      expect_alert_to_be_hidden
+
+      wait_for_requests
+      # reload the page to ensure it stays dismissed
+      visit project_path(project)
+
+      expect_alert_to_be_hidden
+    end
+  end
+
+  def expect_alert_to_be_hidden
+    expect(page).not_to have_content("#{group.name} is approaching the limit of available seats")
+    expect(page).not_to have_link('View seat usage', href: usage_quotas_path(group, anchor: 'seats-quota-tab'))
+  end
+end
diff --git a/ee/spec/features/gitlab_subscriptions/seats_count_alert_spec.rb b/ee/spec/features/gitlab_subscriptions/seats_count_alert_spec.rb
deleted file mode 100644
index d10a89a43d35f30694fe6c7288eb1577400a5ed1..0000000000000000000000000000000000000000
--- a/ee/spec/features/gitlab_subscriptions/seats_count_alert_spec.rb
+++ /dev/null
@@ -1,56 +0,0 @@
-# frozen_string_literal: true
-
-require 'spec_helper'
-
-RSpec.describe 'Display approaching seats count threshold alert', :saas, :js do
-  let_it_be(:user) { create(:user) }
-
-  shared_examples_for 'a hidden alert' do
-    it 'does not show the alert' do
-      visit visit_path
-
-      expect(page).not_to have_content("#{group.name} is approaching the limit of available seats")
-      expect(page).not_to have_link('View seat usage', href: usage_quotas_path(group, anchor: 'seats-quota-tab'))
-    end
-  end
-
-  shared_examples_for 'a visible alert' do
-    it 'shows the alert' do
-      visit visit_path
-
-      expect(page).to have_content("#{group.name} is approaching the limit of available seats")
-      expect(page).to have_content("Your subscription has #{gitlab_subscription.seats - gitlab_subscription.seats_in_use} out of #{gitlab_subscription.seats} seats remaining. Even if you reach the number of seats in your subscription, you can continue to add users, and GitLab will bill you for the overage.")
-      expect(page).to have_link('View seat usage', href: usage_quotas_path(group, anchor: 'seats-quota-tab'))
-    end
-  end
-
-  shared_examples_for 'a dismissed alert' do
-    context 'when alert was dismissed' do
-      before do
-        visit visit_path
-
-        find('body.page-initialised [data-testid="approaching-seats-count-threshold-alert-dismiss"]').click
-      end
-
-      it_behaves_like 'a hidden alert'
-    end
-  end
-
-  context 'when conditions not met' do
-    let_it_be(:group) { create(:group) }
-    let_it_be(:visit_path) { group_path(group) }
-
-    context 'when logged out' do
-      it_behaves_like 'a hidden alert'
-    end
-
-    context 'when logged in owner' do
-      before do
-        group.add_owner(user)
-        sign_in(user)
-      end
-
-      it_behaves_like 'a hidden alert'
-    end
-  end
-end
diff --git a/ee/spec/helpers/seat_count_alert_helper_spec.rb b/ee/spec/helpers/seat_count_alert_helper_spec.rb
new file mode 100644
index 0000000000000000000000000000000000000000..15991eafc255ce32d024706901e7d89f8f06bf64
--- /dev/null
+++ b/ee/spec/helpers/seat_count_alert_helper_spec.rb
@@ -0,0 +1,66 @@
+# frozen_string_literal: true
+
+require 'spec_helper'
+
+RSpec.describe SeatCountAlertHelper, :saas do
+  let(:user) { create(:user) }
+
+  let(:seat_count_data) do
+    {
+      namespace: namespace,
+      remaining_seat_count: 15 - 14,
+      seats_in_use: 14,
+      total_seat_count: 15
+    }
+  end
+
+  before do
+    assign(:seat_count_data, seat_count_data)
+
+    allow(helper).to receive(:current_user).and_return(user)
+  end
+
+  describe '#remaining_seat_count' do
+    let(:namespace) { create(:group) }
+
+    it 'sets remaining seats count to the correct number' do
+      expect(helper.remaining_seat_count).to eq(1)
+    end
+  end
+
+  describe '#show_seat_count_alert?' do
+    context 'with no seat count data' do
+      let(:seat_count_data) { nil }
+
+      it 'does not show the alert' do
+        expect(helper.show_seat_count_alert?).to be false
+      end
+    end
+
+    context 'with seat count data' do
+      let(:namespace) { create(:group) }
+
+      it 'does show the alert' do
+        expect(helper.show_seat_count_alert?).to be true
+      end
+    end
+  end
+
+  describe '#total_seat_count' do
+    context 'when the namespace is nil' do
+      let(:seat_count_data) { { namespace: nil } }
+
+      it 'returns nil' do
+        expect(helper.total_seat_count).to be_nil
+      end
+    end
+
+    context 'when the namespace is present' do
+      let(:namespace) { create(:group) }
+
+      it 'sets total seats count to the correct number' do
+        expect(helper.total_seat_count).to eq(15)
+      end
+    end
+  end
+end
diff --git a/ee/spec/helpers/seats_count_alert_helper_spec.rb b/ee/spec/helpers/seats_count_alert_helper_spec.rb
deleted file mode 100644
index 009918a254182f7e9c3a5446ecefb390b5e180af..0000000000000000000000000000000000000000
--- a/ee/spec/helpers/seats_count_alert_helper_spec.rb
+++ /dev/null
@@ -1,188 +0,0 @@
-# frozen_string_literal: true
-
-require 'spec_helper'
-
-RSpec.describe SeatsCountAlertHelper, :saas do
-  include Devise::Test::ControllerHelpers
-
-  let_it_be(:group) { nil }
-  let_it_be(:project) { nil }
-  let_it_be(:user) { create(:user) }
-
-  before do
-    assign(:project, project)
-    assign(:group, group)
-    allow(helper).to receive(:current_user).and_return(user)
-  end
-
-  shared_examples 'learn more link is built' do
-    it 'builds the correct link' do
-      expect(helper.learn_more_link).to match %r{<a.*href="#{help_page_path('subscriptions/quarterly_reconciliation')}".*>.+</a>}m
-    end
-  end
-
-  shared_examples 'seats info are not populated' do
-    it 'sets remaining seats count to nil' do
-      expect(helper.remaining_seats_count).to be_nil
-    end
-
-    it 'sets total seats count to nil' do
-      expect(helper.total_seats_count).to be_nil
-    end
-  end
-
-  shared_examples 'seats info are populated' do
-    it 'sets remaining seats count to the correct number' do
-      expect(helper.remaining_seats_count).to eq(14)
-    end
-
-    it 'sets total seats count to the correct number' do
-      expect(helper.total_seats_count).to eq(15)
-    end
-  end
-
-  shared_examples 'group info are populated' do
-    it 'builds the correct link' do
-      expect(helper.seats_usage_link).to match %r{<a.*href="/groups/#{context.name}/-/usage_quotas#seats-quota-tab\".*>.+</a>}m
-    end
-
-    it 'has a group name' do
-      expect(helper.group_name).to eq(context.name)
-    end
-  end
-
-  shared_examples 'group info are not populated' do
-    it 'does not build the correct link' do
-      expect(helper.seats_usage_link).to be_nil
-    end
-
-    it 'does not have a group name' do
-      expect(helper.group_name).to be_nil
-    end
-  end
-
-  shared_examples 'alert is not displayed while some info are' do
-    it_behaves_like 'learn more link is built'
-
-    it_behaves_like 'seats info are not populated'
-
-    it_behaves_like 'group info are not populated'
-
-    it 'does not show the alert' do
-      expect(helper.show_seats_count_alert?).to be false
-    end
-  end
-
-  shared_examples 'alert is displayed' do
-    include_examples 'learn more link is built'
-
-    include_examples 'seats info are populated'
-
-    include_examples 'group info are populated'
-
-    it 'does show the alert' do
-      expect(helper.show_seats_count_alert?).to be true
-    end
-  end
-
-  shared_examples 'alert is not displayed' do
-    include_examples 'learn more link is built'
-
-    include_examples 'seats info are populated'
-
-    include_examples 'group info are populated'
-
-    it 'does not show the alert' do
-      expect(helper.show_seats_count_alert?).to be false
-    end
-  end
-
-  shared_examples 'common cases for users' do
-    let_it_be(:gitlab_subscription) do
-      create(:gitlab_subscription, namespace: context, plan_code: Plan::ULTIMATE, seats: 15, seats_in_use: 1)
-    end
-
-    describe 'without a owner' do
-      before do
-        context.add_user(user, GroupMember::DEVELOPER)
-        helper.display_seats_count_alert!
-      end
-
-      include_examples 'alert is not displayed'
-    end
-
-    describe 'with a owner' do
-      before do
-        context.add_owner(user)
-      end
-
-      context 'without display seats count' do
-        include_examples 'alert is not displayed'
-      end
-
-      context 'with display seats count' do
-        before do
-          helper.display_seats_count_alert!
-        end
-
-        include_examples 'alert is displayed'
-      end
-    end
-  end
-
-  it 'sets @display_seats_count_alert to true' do
-    expect(helper.instance_variable_get(:@display_seats_count_alert)).to be nil
-
-    helper.display_seats_count_alert!
-
-    expect(helper.instance_variable_get(:@display_seats_count_alert)).to be true
-  end
-
-  describe 'with no subscription' do
-    include_examples 'alert is not displayed while some info are'
-  end
-
-  describe 'outside a group or project context' do
-    before do
-      helper.display_seats_count_alert!
-    end
-
-    include_examples 'alert is not displayed while some info are'
-  end
-
-  describe 'within a group context' do
-    let_it_be(:group) { create(:group) }
-    let_it_be(:context) { group }
-    let_it_be(:project) { nil }
-
-    include_examples 'common cases for users'
-  end
-
-  describe 'within a subgroup context' do
-    let_it_be(:context) { create(:group) }
-    let_it_be(:group) { create(:group, parent: context) }
-    let_it_be(:project) { nil }
-
-    include_examples 'common cases for users'
-  end
-
-  describe 'within a project context' do
-    let_it_be(:group) { nil }
-    let_it_be(:context) { create(:group) }
-    let_it_be(:project) { create(:project, namespace: context) }
-
-    include_examples 'common cases for users'
-  end
-
-  describe 'within a user namespace context' do
-    let_it_be(:project) { create(:project) }
-
-    before do
-      helper.display_seats_count_alert!
-    end
-
-    it 'does show the alert' do
-      expect(helper.show_seats_count_alert?).to be false
-    end
-  end
-end
diff --git a/ee/spec/requests/projects/issues_controller_spec.rb b/ee/spec/requests/projects/issues_controller_spec.rb
index f4bb415f20af974db8539700beb4df9b626edd08..690415396a5a5d422b078b8e49f336f4df50dccf 100644
--- a/ee/spec/requests/projects/issues_controller_spec.rb
+++ b/ee/spec/requests/projects/issues_controller_spec.rb
@@ -75,6 +75,12 @@ def get_issues
         get_issues # Warm the cache
       end
 
+      it_behaves_like 'seat count alert' do
+        subject { get_issues }
+
+        let(:namespace) { group }
+      end
+
       it 'does not cause extra queries when there are other subepic issues' do
         create(:epic_issue, issue: issue, epic: epic)
 
diff --git a/ee/spec/services/gitlab_subscriptions/reconciliations/calculate_seat_count_data_service_spec.rb b/ee/spec/services/gitlab_subscriptions/reconciliations/calculate_seat_count_data_service_spec.rb
index 1d2e47f1dcc0867a748712a4859fe711ae23b0da..7005a58f1049fb11b15f4a496910dcaab8eadf87 100644
--- a/ee/spec/services/gitlab_subscriptions/reconciliations/calculate_seat_count_data_service_spec.rb
+++ b/ee/spec/services/gitlab_subscriptions/reconciliations/calculate_seat_count_data_service_spec.rb
@@ -31,6 +31,16 @@
       it { is_expected.to be nil }
     end
 
+    context 'when the max_seats_used has not been updated on the subscription' do
+      let(:root_ancestor) { create(:group) }
+
+      it 'returns nil' do
+        create(:gitlab_subscription, namespace: root_ancestor, plan_code: Plan::ULTIMATE, seats: 10, max_seats_used: 9)
+
+        expect(subject).to be_nil
+      end
+    end
+
     context 'when conditions are not met' do
       let(:max_seats_used) { 9 }
 
@@ -40,7 +50,8 @@
           namespace: root_ancestor,
           plan_code: Plan::ULTIMATE,
           seats: 10,
-          max_seats_used: max_seats_used
+          max_seats_used: max_seats_used,
+          max_seats_used_changed_at: 1.day.ago
         )
       end
 
@@ -120,7 +131,8 @@
           namespace: root_ancestor,
           plan_code: Plan::ULTIMATE,
           seats: seats,
-          max_seats_used: max_seats_used
+          max_seats_used: max_seats_used,
+          max_seats_used_changed_at: 1.day.ago
         )
 
         root_ancestor.add_owner(user)
diff --git a/ee/spec/support/shared_examples/controllers/concerns/seat_count_alert_shared_examples.rb b/ee/spec/support/shared_examples/controllers/concerns/seat_count_alert_shared_examples.rb
new file mode 100644
index 0000000000000000000000000000000000000000..c7f6fad43d10e14cb876b3f7f62ad299bf994458
--- /dev/null
+++ b/ee/spec/support/shared_examples/controllers/concerns/seat_count_alert_shared_examples.rb
@@ -0,0 +1,45 @@
+# frozen_string_literal: true
+
+RSpec.shared_examples 'seat count alert' do
+  context 'when the namespace qualifies for the alert' do
+    it 'sets the seat_count_data' do
+      seat_count_data = { namespace: namespace, remaining_seat_count: 1, seats_in_use: 9, total_seat_count: 10 }
+
+      allow_next_instance_of(GitlabSubscriptions::Reconciliations::CalculateSeatCountDataService) do |service|
+        allow(service).to receive(:execute).and_return(seat_count_data)
+      end
+
+      subject
+
+      expect(assigns(:seat_count_data)).to eq seat_count_data
+    end
+  end
+
+  context 'when the feature flag is disabled' do
+    it 'sets the seat_count_data to nil' do
+      stub_feature_flags(seat_count_alerts: false)
+
+      seat_count_data = { namespace: namespace, remaining_seat_count: 1, seats_in_use: 9, total_seat_count: 10 }
+
+      allow_next_instance_of(GitlabSubscriptions::Reconciliations::CalculateSeatCountDataService) do |service|
+        allow(service).to receive(:execute).and_return(seat_count_data)
+      end
+
+      subject
+
+      expect(assigns(:seat_count_data)).to be_nil
+    end
+  end
+
+  context 'when the namespace does not qualify for the alert' do
+    it 'sets the seat_count_data to nil' do
+      allow_next_instance_of(GitlabSubscriptions::Reconciliations::CalculateSeatCountDataService) do |service|
+        allow(service).to receive(:execute).and_return(nil)
+      end
+
+      subject
+
+      expect(assigns(:seat_count_data)).to be_nil
+    end
+  end
+end
diff --git a/locale/gitlab.pot b/locale/gitlab.pot
index 5689a6ed071cc21940bb57d886d71d9559f758b8..abe806e45e29ea2304a612a75e1f2f7c6595d8a0 100644
--- a/locale/gitlab.pot
+++ b/locale/gitlab.pot
@@ -15019,6 +15019,9 @@ msgstr ""
 msgid "Estimated"
 msgstr ""
 
+msgid "Even if you reach the number of seats in your subscription, you can continue to add users, and GitLab will bill you for the overage."
+msgstr ""
+
 msgid "EventFilterBy|Filter by all"
 msgstr ""
 
@@ -44152,8 +44155,10 @@ msgstr ""
 msgid "Your subscription expired!"
 msgstr ""
 
-msgid "Your subscription has %{remaining_seats_count} out of %{total_seats_count} seats remaining. Even if you reach the number of seats in your subscription, you can continue to add users, and GitLab will bill you for the overage."
-msgstr ""
+msgid "Your subscription has %{remaining_seat_count} out of %{total_seat_count} seat remaining."
+msgid_plural "Your subscription has %{remaining_seat_count} out of %{total_seat_count} seats remaining."
+msgstr[0] ""
+msgstr[1] ""
 
 msgid "Your subscription is now expired. To renew, export your license usage file and email it to %{renewal_service_email}. A new license will be emailed to the email address registered in the %{customers_dot}. You can add this license to your instance. To use Free tier, remove your current license."
 msgstr ""