Steam will soon charge a 12% VAT on all game purchases in the Philippines

Pinoy gamers will see increased PC game prices soon as Steam will charge a 12% VAT on all purchases in the Philippines beginning this June.

Details were recently shared in the Steamworks Documentation FAQ. There, it’s listed that Steam will soon collect a 12% value-added tax in the Philippines for every purchase on the platform. As such, games sold on Steam in the PH will have a higher price tag starting in June. What’s more, the 12% VAT will also be levied on purchases on the Steam Workshop.

This is a result of the VAT on digital services law that was passed a few months ago. While Steam collects taxes in many other countries, the Philippines’ 12% tax rate is a bit higher than SEA neighbors. For reference, Thailand only has a 7% tax rate while Singapore, Malaysia, and Indonesia have 9, 10, and 11%, respectively.

Note that while the VAT is inclusive, meaning the price of games and Workshop items on Steam will automatically include the value-added tax. At the very least, this means Pinoy gamers won’t have to calculate an additional 12% when looking at games they want to purchase.

This does mean that games will be 12% more expensive beginning in June. Given that the VAT on Steam purchases in the Philippines will begin in June, Pinoy gamers may want to buy the games on their wishlist right now, especially as the Steam Spring Sale is ongoing.