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).
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.
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