Cheyenne Suarez

Steam to start charging 12% VAT in PH beginning June 1

Article (news)

John Franklin Kennedy Caacbay

ABS-CBN News

MANILA, Philippines – Gamers in the Philippines may soon see higher prices for their video games, as Steam will start charging a 12% value-added tax (VAT) beginning June 1 this year.The development was confirmed on <a href="https://partner.steamgames.com/doc/finance/taxfaq">Steam&#x27;s website</a>, as Philippines was listed in the &quot;To Be Collected in the Future&quot; column, indicating the impending collection of the inclusive tax rate on digital transactions.This was after President Ferdinand Marcos Jr. signed into law the Value Added Tax (VAT) on Digital Services in October last year.<div><a href="https://www.abs-cbn.com/business/2024/10/2/bir-sees-possible-p100-b-earnings-over-tax-on-intl-digital-services-2157">READ: BIR sees possible P100-B earnings over tax on int&#x27;l digital services </a></div>Steam is a platform for games and applications developed by US-based Valve Corporation.Also affected with the VAT are streaming platforms Netflix and Amazon, as well as Google, Facebook and other foreign tech firms that provide digital services in the Philippines.<div><a href="https://www.abs-cbn.com/business/2024/10/2/new-law-imposes-vat-on-digital-services-1045">READ: New law imposes VAT on Netflix, other digital services </a></div>In a previous <a href="https://www.abs-cbn.com/business/2024/10/2/new-law-imposes-vat-on-digital-services-1045">report</a>, it is seen to generate P102.12 billion for the government from 2025 to 2028, according to the Department of Finance.

Gamers in the Philippines may soon see higher prices for their video games, as Steam will start charging a 12% value-added tax (VAT) on June 1 this year.

Gamers in the Philippines may soon see higher prices for their video games, as Steam will start charging a 12% value-added tax (VAT) on June 1 this year.