Filipino gamers can breathe a sigh of relief as Steam has begun implementing the mandated 12% Value-Added Tax (VAT) on digital services, with no direct impact on game prices at checkout. Well, for now.
Steam VAT Now in Effect
The new tax, effective recently, is already incorporated into the listed prices, with game publishers bearing the responsibility of absorbing the charge.
This means consumers will not see additional costs when purchasing games. Publishers, however, may adjust their pricing internally to account for the VAT.
For a quick refresher, the Philippine government mandated the 12% VAT on foreign digital service providers like Steam to level the playing field between local and international services. While beneficial for local businesses, the 12% VAT rate is higher than in some neighboring Southeast Asian nations, such as Thailand (7%), Singapore (9%), Malaysia (10%), and Indonesia (11%).
Started his freelancing adventure in 2018 and began doing freelance Audio Engineering work and then started freelance writing a few years later.
Currently he writes for Gadget Pilipinas and Grit.PH.
He is also a musician, foody, gamer, and PC enthusiast.
