June 1, 2025, will be a sad day for Filipino gamers. Steam will add a 12% tax to all game purchases in the country. This is a surprise, as AAA games aren’t affordable for Filipinos.

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Here’s why Steam added tax to all game purchases and what it means for other neighboring ASEAN countries.

Why Steam Added Tax to Game Purchases in the Philippines

Country NameTax RateTax TypeEffective DatePhilippines12%Inclusive1 Jun, 2025

Steam added a 12% tax rate to all game purchases in the Philippines effective on June 1, 2025, following the signed Republic Act 12023 on October 2, 2024. Since the Philippines is now enforcing a 12% VAT (Value-Added Tax) on non-resident digital service providers, foreign companies must collect taxes if they conduct business in the Philippines, even without a physical presence there.

The law aims to modernize the country’s tax system, and it is not new to ASEAN countries; other nations like Indonesia, Malaysia, and Singapore have already implemented the same policies.

All of Steam’s Currently Taxed Countries

Country NameTax RateTax TypeEffective DateUnited Arab Emirates5%Inclusive26 Jan, 2022Austria20%Inclusive26 Jan, 2022Australia10%Inclusive26 Jan, 2022Belgium21%Inclusive26 Jan, 2022Bulgaria20%Inclusive26 Jan, 2022Belarus20%Inclusive26 Jan, 2022Switzerland8.1%Inclusive1 Jan, 2024Chile19%Inclusive26 Jan, 2022Colombia19%Inclusive26 Jan, 2022Cyprus19%Inclusive26 Jan, 2022Czech Republic21%Inclusive26 Jan, 2022Germany19%Inclusive26 Jan, 2022Denmark25%Inclusive26 Jan, 2022Estonia22%Inclusive1 Jan, 2024Egypt14%Inclusive15 Jul, 2023Spain21%Inclusive26 Jan, 2022Finland25.5%Inclusive1 Sep, 2024France20%Inclusive26 Jan, 2022United Kingdom20%Inclusive26 Jan, 2022Greece24%Inclusive26 Jan, 2022Croatia25%Inclusive26 Jan, 2022Hungary27%Inclusive26 Jan, 2022Indonesia11%Inclusive14 Jan, 2025Ireland23%Inclusive26 Jan, 2022Isle of Man20%Inclusive26 Jan, 2022India18%Inclusive26 Jan, 2022Iceland24%Inclusive26 Jan, 2022Italy22%Inclusive26 Jan, 2022Japan10%Inclusive26 Jan, 2022Korea, Republic of10%Inclusive26 Jan, 2022Kazakhstan12%Inclusive26 Jan, 2022Lithuania21%Inclusive26 Jan, 2022Luxembourg17%Inclusive1 Jan, 2024Latvia21%Inclusive26 Jan, 2022Monaco20%Inclusive26 Jan, 2022Moldova, Republic of20%Inclusive26 Jan, 2022Malta18%Inclusive26 Jan, 2022Mexico16%Inclusive1 Jun, 2020Malaysia8%Inclusive1 Mar, 2024Netherlands21%Inclusive26 Jan, 2022Norway25%Inclusive26 Jan, 2022New Zealand15%Inclusive26 Jan, 2022Peru18%Inclusive20 Jan, 2025Poland23%Inclusive26 Jan, 2022Portugal23%Inclusive26 Jan, 2022Romania19%Inclusive26 Jan, 2022Serbia20%Inclusive26 Jan, 2022Russian Federation20%Inclusive30 Mar, 2021Saudi Arabia15%Inclusive26 Jan, 2022Sweden25%Inclusive26 Jan, 2022Singapore9%Inclusive1 Jan, 2024Slovenia22%Inclusive26 Jan, 2022Slovakia23%Inclusive9 Jan, 2025Thailand7%Inclusive26 Jan, 2022Turkey20%Inclusive15 Jul, 2023Taiwan5%Inclusive26 Jan, 2022Ukraine20%Inclusive26 Jan, 2022South Africa15%Inclusive1 Apr, 2018

While many countries have a way higher tax rate than the Philippines, 12% is still the highest among all ASEAN countries, higher than Indonesia’s 11% and Singapore’s 9%.

It is interesting how this would affect Steam prices, as most of the biggest publishers don’t give Filipinos any regional pricing based on their income. Even with Indonesia having an 11% tax rate on Steam, they still have one of the lowest Steam prices on games, according to Steamdb.info.

Other ASEAN or third-world countries might also consider adopting the same policies in the future, especially since most goods are becoming digital now.

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