#Digital services tax Philippines

Steam has officially confirmed that all Steam purchases made in the Philippines will be subject to 12% value-added tax (VAT) starting June 1, 2025. Steam confirmed the new tax policy on its website, which aligns with the Republic Act 12023, or the 12% VAT on Digital Services Law. This law taxes digital services from both local and foreign providers, affecting platforms like Netflix, Spotify, Amazon, Disney+, and Lazada, among others. on October 2, 2024, the measure updates the National Internal Revenue Code of 1997 to include digital services like media, music, online ads, and of course, video games. On the global scale, however, the Philippines has one of the lowest tax rates on Steam. The European Commission has issued preliminary findings that Meta may have violated the Digital Services Act (DSA) over the allegedly addictive design of Facebook and Instagram. The investigation was formally launched in May 2024 and is part of the European Union's broader efforts to ensure that major online platforms comply with the Digital Services Act. According to BIR spokesperson and lawyer Brianna Kay delos Santos, the digital tax calendar has been available on the BIR website since January 1. Read more in our articles including "Steam to add 12% VAT on purchases in PH starting June 2025" and "EU says Meta's infinite scroll and autoplay may violate Digital Services Act".