Steam offers sales before new 12% VAT starts

On October 2, 2024, President Ferdinand Marcos Jr. signed a new law that will introduce a 12 percent value-added tax (VAT) on foreign digital services. This law, known as Republic Act No. 12023, aims to clarify tax rules for e-commerce transactions with foreign companies. The government expects this tax to generate over ₱102 billion from 2025 to 2029, which will fund projects like building schools and hospitals. The law defines "digital services" as those provided through electronic networks. This includes online platforms like Netflix, Disney Plus, Spotify, and various e-marketplaces such as Lazada and Shopee. Notably, video game distribution platform Steam will also be affected, implementing the VAT starting June 1. To help consumers adjust to the new tax, Steam will continue to hold regular sales. These include major seasonal sales multiple times each year, themed events for specific game genres, and various limited-time discounts. Gamers are encouraged to take advantage of these sales before the VAT takes effect.