Steam to implement 12% VAT in PH starting June

Steam is set to implement a 12% value-added tax (VAT) in the Philippines starting June 1.

The game distribution company bared the upcoming change on its website, months after President Ferdinand "Bongbong" Marcos Jr. signed into law the measure seeking to impose a 12% VAT on digital services provided by foreign companies.

Republic Act 12023 is imposed on electronic or online sale of services, cloud services, and platforms providing downloadable digital content.

Netflix, Disney Plus, HBO Go, Google, and other online marketplaces such as Lazada, Shopee, and Amazon, are also affected.

Steam, developed by Valve, is known for its vast library of game titles, and is the primary way for PC gamers to purchase, manage, and play their games, and connect with their community. It also has its own hardware, the Steam Deck and Valve Index. —JCB, GMA Integrated News