In a nutshell

• Starting June 1, 2025, Steam purchases in the Philippines will include a 12% Value-Added Tax (VAT), reflecting Senate Bill 2528’s effort to tax digital transactions and level the playing field for local and foreign digital service providers.
• Prices on Steam will increase accordingly; for instance, a ₱100 game will now cost ₱112, with VAT already factored into displayed prices.
• The Philippines’ 12% VAT on digital services will be the highest in Southeast Asia, surpassing neighbors like Thailand (7%), Malaysia (8%), Singapore (9%), and Indonesia (11%).

Valve has announced that starting June 1, 2025, Steam purchases in the Philippines will be subject to a 12% value-added tax.

Steam Tax in the Philippines – Everything You Need to KNow

According to the official Taxes FAQ page on Steam, the price adjustment to include the 12% tax will take effect in June. Other countries and Southeast Asian neighbors, like Singapore and Thailand, have already been affected.

This is an effect of Senate Bill 2528, which aims to impose VAT on digital transactions in the Philippines. This includes other digital services such as Netflix, Disney+, and digital purchases.

As a result, Steam users will see an increase in price on game purchases and other items like DLC, with prices increasing by 12%. A PHP100 game will now cost PHP112, which is automatically reflected in the displayed price.

Other Southeast Asian countries have already been paying these adjusted costs. Based on the list of countries where the current tax rates have taken effect, the Philippines has the highest tax rate compared to others, and the list is as follows:

• Thailand: 7% (since January 26, 2022)
• Malaysia: 8% (since March 1, 2024)
• Singapore: 9% (since January 1, 2024)
• Indonesia: 11% (Since January 14, 2025)
• Philippines: 12% (starts June 1, 2025)

Other countries in the world with tax-adjusted prices are Australia (20%), Germany (19%), UK (20%), France (20%), Japan (10%), and Saudi Arabia (15%).