Home Tech News Games, Streaming Apps may become more expensive as Congress approves digital VAT

Games, Streaming Apps may become more expensive as Congress approves digital VAT

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All digital services including streaming services, social media channels, cloud storage services, online e-commerce sites, as well as games and other types of electronic transactions may become more expensive if the government finally approves the digital tax or VAT (Value Added Tax).

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The house committee in congress that covers the said bill has approved the new electronic VAT for all online and digital forms of transactions just today. This will pass a review before becoming final after the executive branch signs it.

It means that if this bill becomes a law, a price hike to almost all digital apps, services, and games will happen. This adds a 12% tax for each transaction that will happen. More or less, the brand may also impose higher than the 12% VAT.

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You can find the list of services that will be affected by this bill below.

  • Online licensing of apps and software
  • Streaming apps like Netflix, Hulu, Spotify, HBO Max, Disney+
  • Games and Mobile Apps
  • E-commerce transactions i.e. Lazada, Shopee, SM Online Store etc.
  • Cloud storage and webcast and webinars
  • Digital consumption and contents i.e. photos, training, music, movies, files
  • Online Advertisement and Search Engine like Google Ads, Facebook Ads, Youtube revenues
  • Social network services like Facebook and Twitter
  • Website hosting, domain, server and database
  • Different types of Cloud and file sharing
  • Internet-based telecommunication and services
  • Online training and courses
  • Online newspapers and magazine subscriptions
  • Payment processing

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