Steam to impose 12% VAT in the Philippines

Steam will start charging a 12% value-added tax (VAT) in the Philippines from June 1. This change was announced on Steam's website. It comes after President Ferdinand "Bongbong" Marcos Jr. signed a new law to implement the tax on digital services from foreign companies. The new law, known as Republic Act 12023, applies to online sales of services and downloadable digital content. This means that popular platforms like Netflix, Disney Plus, HBO Go, Google, Lazada, Shopee, and Amazon will also be affected. Steam, developed by Valve, is known for its extensive library of video games. It is a major platform for PC gamers to buy and play games, as well as connect with other players. Steam also offers its own hardware, like the Steam Deck and Valve Index.