Steam Games & Digital Purchases In The Philippines Will Be Subjected To 12% VAT

Bad news for digital game buyers in The Philippines.

According to recent government taxation news in the Southeast Asian country, all Steam purchases and other online game store purchases in the Philippines will be subjected to 12% Value-Added Tax (VAT). This new addition will take place starting 1st June 2025 (via Reuters).

This also applies to streaming services like Netflix, Amazon Prime Videos (and Amazon online store), Disney, and Alphabet/Google. Here’s a statement about why VAT is added according to Bureau of Internal Revenue Commisioner Romeo Lumagui:

“This will promote fair competition amongst businesses that are profiting from consumers here in the Philippines. A level playing field produces better products and services.”

Since the pandemic, tech giants have experienced higher usage in Southeast Asia, but they also face increasingly stringent fiscal tax regimes. In any case, a lot of Philippines PC gamers will not be pleased about this development.