The era of tax-free Steam purchases in the Philippines is coming to an end. Starting in June 2025, Steam and other digital platforms will begin charging a 12% value-added tax (VAT) on purchases, leading to higher prices for games, DLCs, and in-game content. While the initial backlash is loud, the reality is that this “Steam tax” is here to stay—and history shows that Filipino gamers will likely continue buying on the platform despite the price increase.
Why Is Steam Taxed Now?
The tax is based on Republic Act No. 12023, a law signed in October 2024 that imposes VAT on digital services in the Philippines. This means non-resident digital service providers like Steam, Netflix, and Spotify must now charge VAT on their transactions in the country. The goal is to level the playing field between foreign digital services and local businesses, which have always been subject to VAT.
How Will It Affect Steam Prices?
The new tax means that all Steam purchases will now be subject to a 12% price increase. If a game previously cost ₱1,000, it will now be ₱1,120 with VAT included. This change applies not just to full-priced games but also to in-game purchases, DLCs, and microtransactions.
The History of Steam Pricing in the Philippines
Steam has long implemented regional pricing, making games more affordable for Filipino players compared to Western markets. Many PC gamers in the Philippines have benefited from significantly lower prices compared to their U.S. or European counterparts. This pricing strategy helped Steam dominate the digital distribution market locally, even as other platforms like the Epic Games Store and GOG attempted to compete.
Will Filipino Gamers Stop Buying on Steam?
The backlash against the tax is understandable—nobody likes price increases. However, history suggests that most Filipino gamers will adapt rather than abandon Steam. Even with the VAT, Steam remains the most convenient and widely used platform for PC gaming in the country. Alternatives, such as buying physical copies or shifting to other stores, aren’t as practical. While some players may hold off on purchases initially, they’ll likely return to buying games once the frustration subsides.
Is There Any Way to Avoid the Tax?
Technically, the only way to avoid the tax is to purchase from a different platform that isn’t enforcing it—though this is unlikely since most major digital services are required to comply. Some gamers might turn to gray market key resellers, but these come with risks, such as revoked licenses and security concerns. Others may opt to buy Steam Wallet codes from local retailers, but these will also be affected by VAT in the long run.
The Future of Steam in the Philippines
Despite the controversy, this Steam tax aligns the Philippines with other countries that have already imposed similar digital service taxes. Countries like Indonesia, South Korea, and Australia have successfully implemented digital VAT without significantly disrupting digital purchases. It’s a frustrating change, but ultimately, Filipino gamers will likely adjust and continue using Steam as their primary gaming platform.
In the end, while Steam games in the Philippines are about to get pricier, the platform’s dominance isn’t going anywhere. Gamers may grumble, but the convenience, accessibility, and vast library of Steam will keep it as the go-to marketplace for PC gaming.
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