12% VAT to hit Steam PH users

Photo courtesy: Steam | Facebook

HEADS up, Filipino gamers!

Game distribution company Steam announced that it will impose a 12 percent value-added tax (VAT) on its services starting June 1.

It announced on the Steamworks Documentation webpage that the VAT would already reflect on the prizes of the PC games available on the platform.

This comes after President Ferdinand “Bongbong” Marcos Jr. signed Republic Act (RA) No. 12023, imposing a 12 percent VAT on foreign digital service providers (DSP), including Steam and other popular platforms like Netflix, Disney Plus, Google, Lazada, and Shopee.

Gen Z gamers react

As purchases on the platform are expected to increase in a few months, several Filipino Gen Z gamers expressed disappointment over the added tax. Among them is Benedict Bencito, a 22-year-old student who is an avid Steam user.

“As a gamer who is always buying games on Steam, it is sad lang kasi nagdagdag pa ng tax,” Bencito told republicasia.

He also shared his thoughts on the gaming industry’s future once the added tax is implemented, expressing concern that it may drive other gamers toward piracy.

“It can affect the local game developers. Mas marami nang magpa-pirate ng games sa Steam and it can affect the rating of all the games since magiging mahal siya,” Bencito explained. “Some [might] choose pirated games na lang para hindi na sila bumili ng games sa Steam.”

But for someone who already built familiarity and community in Steam, it is difficult for Bencito to disregard the platform. He said he would just wait for the products to be sold at discounted prices.

Steam users Jadyn Villanueva, 22, and Randel Datu, 21, agreed with Bencito.

“I don’t really buy games that much. But I will take note that it’s better or worth my money to buy games on Steam when it’s on sale,” Villanueva shared with republicasia.

Datu, meanwhile, said, “I will still use it, but I won’t buy any of their games unless they’re on sale.”

However, Villanueva said the added tax does not diminish the reliability of the platform in terms of purchasing and downloading games.

“Since Steam is a trustworthy platform to download games, mas maigi na dito na ako mag-download kaysa sa third party websites para lang hindi magkaroon ng mga virus,” she explained.

While the change and nuisance are for the digital consumers to bear, Marcos Jr. previously reassured that the law would strengthen the authority of the government to digital services and foster effective value-added tax collection.

Steam offers a wide variety of services for gamers from buying and playing games to streaming and connecting with other users within their community. It provides an efficient and organized space for gamers to play their hobbies and passions.

While the added tax is yet to come in the following month, the users are encouraged to purchase games on their checklists before the inevitable surging of prices.