Bad news for us Filipino gamers, as Steam will now be charging a 12 percent value-added tax (VAT) on all paid titles purchased on the platform starting June 1, 2025.
The Valve-owned game distribution platform has updated the Taxes FAQ (Steamworks Documentation) page [https://ift.tt/0f9b5Nu] regarding the VAT implementation in the country with the following details:
- To Be Collected in the Future
- Country – Country Name – Tax Rate – Tax Type – Effective Date
- PH – Philippines – 12% – Inclusive – 1 Jun, 2025
Besides the anticipated slight increase in the price of Steam games, the Steam Workshop will be subject to a 12 percent VAT on all purchases.
The VAT on Digital Services Law, which was enacted by President Bongbong Marcos (PBBM) last October 2024, caused this development.
To recall, PBBM signed the bill to tax foreign digital services with 12% VAT. Online sales of services, cloud services, and downloadable digital content are subject to Republic Act 12023.
Let us go back to the Taxes FAQ table. Compared with the other neighboring Asian countries, the Philippines has the highest tax rate at 12 percent, followed by Indonesia (11%), Singapore (9%), Malaysia (8%), Thailand (7%), and Taiwan with the lowest (5%). Vietnam and Cambodia are not listed as Steam is currently banned in the said countries.
Known for its large library of games, Steam is the main way PC gamers buy, manage, play, and connect with their community. Further, it has hardware products, including the Steam Deck (handheld gaming PC) and Valve Index (VR device).
Before the 12 percent VAT starts, now is the good time to buy your favorite PC games while they are still a little cheaper. There is also a Steam Spring Sale going on right now that makes them even more affordable.
I know this change is quite sad for us Pinoy gamers. If you have any thoughts about this, just comment below.
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