Steam Games in the Philippines Will Have a 12% VAT Starting June 2025 – What You Need to Know

Steam users in the Philippines will soon be subject to a 12% Value-Added Tax (VAT) on all digital purchases, starting June 1, 2025.

Why Is Steam Implementing a 12% Digital Tax?

It’s not Steam but the Philippine government through Senate Bill 2528, which aims to tax foreign digital services operating in the country. While the bill was passed earlier, enforcement has been gradual, and Steam is now adjusting its pricing to comply with Philippine tax laws.

Its frustrating to hear but this tax is not specifically targeting Steam—it applies to all foreign digital services operating in the Philippines. This includes platforms like Netflix, Spotify, PlayStation Store, and Xbox Store, among others.

According to ASEAN Briefing, the Philippine government introduced this tax to create a “more competitive environment for local digital service providers.” Essentially, the goal is to level the playing field by ensuring that foreign companies pay taxes similar to local businesses.

How Much Will Steam Prices Increase in the Philippines?

It will vary, of course. Starting June 1, 2025, a 12% VAT will be included in all purchases on Steam. This means that Games, DLCs, and in-game purchases will simply be 12% more expensive than before.

For example, if a game previously cost ₱1,000, expect the new price to be around ₱1,120 after VAT.

The listed price on Steam will already include VAT, so you shouldn’t see an extra charge at checkout.

What About Other Platforms?

Since Senate Bill 2528 applies to all foreign digital services, expect similar price adjustments on platforms like the PlayStation Store and the Nintendo eShop, that is, if they had their own dedicated regional store for the country.

However, some platforms already factor in VAT or have different tax policies based on your account’s region. For example, with the Philippines not having a dedicated PlayStation Store region, Filipino users are subject to their chosen region’s tax laws instead.

Xbox’s store and their service PC Game Pass also had their price adjusted recently. We are confirming if these services have implement the the 12% VAT, if not, expect prices to go up on those platforms as well.

How Does the Philippines Compare to Other Countries?

The Philippines isn’t the only country implementing value added tax on digital services—several Southeast Asian countries have similar taxes. Here’s how they compare:

• Philippines – 12% VAT (starting June 2025)

• Indonesia – 11% VAT (implemented in 2025)

• Malaysia – 8% DST (Digital Services Tax) (implemented in 2024)

• Singapore – 9% GST (Goods and Services Tax) (implemented in 2022)

• Thailand – 7% VAT (implemented in 2022)

With 12% VAT, the Philippines has one of the highest digital tax rates in Southeast Asia.

We knew this day would come but it feels more real now that we have a date attached to it. It feels weird that everything we do with our hard-earned money is being taxed. It’s even weirder that consumers get taxed for digital goods operating outside the country.

---