Steam games will be more expensive in the Philippines soon, as it noted in its latest tax FAQ that it will impose a 12% VAT starting June 1. The implementation of a 12% VAT is part of the government’s taxation of digital services.
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The tax will be inclusive, meaning the displayed prices on Steam will reflect the added VAT so that you don’t need to compute for the additional tax. This also means that Filipinos should expect a slight price increase when buying games. In an example made by Back2Gaming, a game that’s priced at Php 1,000 would include a VAT of Php 120.
Compared to other neighboring Asian countries, the Philippines has the highest tax rate at 12%. For comparison, Indonesia has an 11% tax, while Singapore and Thailand have a 9% and 7% tax respectively. Malaysia has an 8% tax, while Taiwan has the lowest tax at 5%. Cambodia and Vietnam are not included, as Steam is banned in those countries.
If you want some consolation, the tax collected by Steam in Japan and Korea is 10%, while Hungary has the highest tax at 27%.
