“From Dadum to Chaching.”
The way we enjoy digital entertainment in the Philippines is about to change. Starting June 1, 2025, a new 12% Value-Added Tax (VAT) will apply to foreign digital services—think Netflix, Disney+, HBO Go, Apple TV, Steam, and even cloud storage providers.
This move, outlined under Republic Act No. 12023, brings foreign digital companies in line with local businesses, which have long been subject to VAT. In short, the government wants everyone, local or global, playing by the same tax rules.
So, What Does This Mean for You?
If you’re subscribed to any streaming or digital platform, expect your monthly bill to go up. Some services have already updated their prices to include the new tax. You might not notice a huge jump, but over time, it can add up—especially if you’re subscribed to multiple platforms.
With prices going up, many people might start rethinking their subscriptions. Some may drop lesser-used services, while others might switch to bundled plans or cheaper, ad-supported options.
The new VAT is part of a broader push to modernize tax collection and make it fairer for everyone. But for everyday users, it means keeping a closer eye on their digital spending.
Change is never easy, especially when it affects how we unwind after a long day. But with a little planning, you can still enjoy your favorite shows, games, and cloud tools without breaking the bank. Maybe it’s time to finally decide which streaming platform truly deserves your pesos.
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