Steam, a digital gaming distribution platform, is among those affected by the implementation of the 12% value-added tax (VAT) on digital services in the Philippines that started on June 1, 2025.
At first glance, the imposed VAT indicates higher prices of Steam games for Filipino gamers. For instance, a Php1,000 game pre-tax will become Php1,120 due to the 12% tax.
According to Steam’s FAQs page, the current tax rate in the Philippines is inclusive in the pricing. This means that the tax is already included in the cost of the game and is not added during checkout.
See also: How to top up your Steam Wallet in the Philippines
However, a post from KuyaNic on Facebook said Valve confirmed that taxes will not be passed on to consumers. Instead, the game publishers and developers will be responsible for absorbing the taxes.
So, is this good news or not?
In a related post from GamingPH, the comment section was filled with sentiments on the possible implications of transferring the burden of tax collection to the publishers. Some say the pricing may be stable for now, but it will eventually adjust as the publishers pass the taxes on to the customers to maintain their margin.
If you’re curious, here’s how the Philippines’ 12% tax rate compares to other Asian countries on the Steam list: India (18%), Indonesia (11%), Japan (10%), South Korea (10%), Singapore (9%), Malaysia (8%), Thailand (7%), Taiwan (5%). Hungary has the highest listed tax rate of 27%.