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. The VAT applies to all game titles as well as in-game purchases and downloadable content (DLC), which are classified as digital transactions.
This means a game priced at Php1,000 will now cost an extra Php120. Notably, the VAT will be inclusive, meaning the tax will be displayed upfront rather than added at checkout.
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.
Signed into law by President Ferdinand Marcos Jr. 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.
In comparison to other countries in Southeast Asia, the Philippines’ 12% VAT is the highest. Taiwan imposes 5%, Thailand at 8%, and the VAT is 9% for both Malaysia and Singapore.
On the global scale, however, the Philippines has one of the lowest tax rates on Steam. Most countries have inclusive tax of 20% and above—Hungary being the highest at 27%, followed by Finland at 25.5%.
Been Anticipating Now Getting Another Game