It’s been all over the news and social media platforms, starting this year, a 12% VAT now applies to platforms like Netflix, Spotify, YouTube, Steam, Fiverr, Upwork, Skillshare, Canva, and other digital services.
Looking back at October 2024, President Ferdinand Marcos Jr. signed into law the Value-Added Tax (VAT) on Digital Services, which imposes a 12% VAT on foreign digital service providers.
With that being said, Netflix will implement higher monthly fees starting June 1, 2025. This change applies to all subscription plans.
| Plan | Price (New) | Price (Old) | Features |
|---|---|---|---|
| Mobile | PHP 169 | PHP 149 | HD 720p, 1 user, 1 download device |
| Basic | PHP 279 | PHP 249 | Full HD 1080p, 1 user, 2 download devices |
| Standard | PHP 449 | PHP 399 | 4K + HDR, 2 users, 6 download devices, spatial audio, 1 extra member |
| Premium | PHP 619 | PHP 549 | 4K + HDR, 4 users, 6 download devices, spatial audio, 1 extra member |
Despite the price hike, features and other plan benefits remain the same.
Aside from Netflix, the upcoming imposed 12% Value-Added Tax (VAT) includes popular platforms such as:
Starting June 1, these platforms, along with many others, will include the additional VAT in their pricing as part of the government’s plan to tax foreign digital service providers.
As a result, users can expect price increases on all affected services.
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