THE recent 12% Value-Added Tax (VAT) implemented in June 2025 is expected to trigger a wave of price increases across various digital services in the Philippines.
Following Netflix’s decision to pass on the increased tax to its users, other platforms offering streaming, gaming, ride-hailing, and cloud storage services are anticipated to follow suit.
This move will likely impact Filipino consumers significantly, adding to the cost of accessing these increasingly integral services. While some companies, such as Netflix, have opted to directly increase user fees to cover the added tax burden, others, like Steam, have chosen to absorb the cost themselves, at least for the time being. The long-term sustainability of this approach remains to be seen.
Tax expert Mon Abrea commented that the government’s increased revenue will stem directly from Filipino consumer spending.
He also called for a more effective and equitable taxation system that ensures fair contributions from large multinational technology companies operating within the Philippines.
This highlights a broader concern regarding the potential for disproportionate impact on consumers while larger corporations may find ways to mitigate the tax burden.
The coming months will reveal the full extent of these price adjustments and their overall effect on the digital landscape in the Philippines.
