Starting June 1, Steam users in the Philippines will see a change in pricing as the platform begins applying a 12% value-added tax (VAT) on purchases. This update comes in compliance with a new national policy expanding tax regulations to include digital services offered by international providers.
This development follows the enactment of Republic Act No. 12023, which was recently signed into law by President Ferdinand Marcos Jr. The legislation requires foreign companies offering electronic and cloud-based services—such as video streaming, software downloads, and digital marketplaces—to collect VAT on their sales in the country.
Under the law, digital giants like Netflix, Disney+, Google, HBO Go, Amazon, Shopee, and Lazada are also required to apply VAT to their products and services. Steam now joins the list of platforms that must adhere to the updated tax rules.
Steam, a globally recognized platform created by Valve Corporation, is the go-to hub for PC gamers. With a massive catalog of downloadable games, user-generated content, community features, and even proprietary hardware like the Steam Deck and Valve Index, it has long been a central ecosystem for gaming enthusiasts worldwide.
While the 12% VAT will slightly increase the cost of digital purchases, the change is part of a broader effort by the Philippine government to ensure tax fairness and adapt to the growing digital economy. Filipino gamers and consumers are encouraged to prepare for the change and monitor their purchase receipts for transparency.
This policy shift signals a growing trend in Southeast Asia, where countries are beginning to formalize tax collection from digital platforms as online services continue to expand.