Steam Games Are About to Get More Expensive in the Philippines

(SPOT.ph) Got games sitting on your Steam wishlist? Now might be the time to check out, as Steam is set to charge users a 12% VAT on purchases starting June 1, 2025 as stated on its official website.

The dreaded tax has been looming since Republic Act 12023 was signed into law in October 2024. Initially, most people assumed it would only affect streaming platforms like Netflix and Spotify, but it turns out game distribution services like Steam aren’t exempt.

This means all games, downloadable content (DLC), and other digital purchases on Steam will now be subject to a 12% VAT. For example, a game that used to cost P1,500 will now be priced at P1,680. The prices on the platform will already include the tax, so there won’t be any surprise charges at checkout. 

Compared to our Southeast Asian counterparts, we have the highest VAT on digital services at 12%, followed by Indonesia (11%), Singapore (9%), and Malaysia (8%).

Also read: VAT on Digital Services: Should You Be Worried About Price Hikes?

Why is Steam charging a 12% VAT?

Although the law doesn’t directly impose a new tax on consumers, the 12% VAT that these companies are now required to pay will likely be passed on to you. At least, that's what happened to Singapore and Indonesia when they passed similar legislation—and what we seem to be seeing now with Steam.

This applies to any service supplied over the Internet, like online shopping (Shopee, Lazada, Shein), social media (X, YouTube) and even cloud storage services (Google Drive, OneDrive). Before this, only local businesses were paying these taxes, so this move was aimed at leveling the playing field. 

“If you are reaping the rewards of a fruitful digital economy here, it is only right that you contribute also to its growth. Whether you are a small tech startup or a global tech giant based halfway around the world, if you are making money here in the Philippines, you're a part of our community, and with that comes a shared responsibility,” President Ferdinand “Bongbong” Marcos Jr. said during the ceremonial signing.

For Filipino gamers, though, the fact of the matter is games are about to get more expensive.

Also read: A Taxing Lead: The Philippines Has the Highest VAT Rate in Southeast Asia