Steam games sold in the Philippines will become more expensive as the digital distribution service will start imposing a 12 percent VAT starting June 1, 2025.
This development comes after the bill aiming to impose Value Added Tax (VAT) on foreign digital services available in the Philippines was signed into law last year.
Steam subtly made the VAT inclusion official on its tax FAQ page. The new tax will be inclusive, so all the final prices posted already includes the 12% increase — similar to other goods sold in the country.
The new 12% VAT law is expected to be felt this year. In the coming months, we can expect price increases on other foreign digital services like Netflix, Disney+, Spotify, YouTube Premium, and more.