12 percent VAT is nothing to sneer at but these sales may just soften the blow
On Oct. 2, 2024, President Ferdinand Marcos Jr. signed into law Republic Act No. 12023, which is set to impose a 12 percent value-added tax (VAT) on foreign digital services.
The newly enacted law, which partially amends the National Internal Revenue Code of 1997, will address unclear tax laws on e-commerce transactions from foreign companies and bring in additional revenue for the national government.
According to the Department of Finance, RA 12023 is expected to generate ₱102.12 billion of revenue from 2025 to 2029, which “will be channeled into projects that directly benefit the Filipino people, such as building more schools, roads, and hospitals as well as supporting vital socio-economic programs.”
READ: Marcos signs law imposing 12% VAT on digital services from offshore firms
The law identifies ‘digital services’ as services offered through electronic networks and includes online search engines, e-marketplaces, cloud services, online media and advertising, online platforms, and digital goods.
Among those to be affected by RA 12023 are subscription-based platforms such as Netflix, Disney Plus, and Spotify, and marketplaces such as Lazada and Shopee. The law also includes digital distribution platform for video games Steam, which is set to implement the 12 percent VAT starting June 1.
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Twelve percent is nothing to sneer at but these upcoming sales may just soften the blow:
- City Builder & Colony Sim Fest: March 24 to 31
- Sokoban Fest: April 21 to 28
- Wargames Fest: April 28 to May 5
- Creature Collector Fest: May 12 to May 19
- Zombies vs. Vampires Fest: May 26 to June 2
- Steam Next Fest: June Edition: June 9 to 16
- Fishing Fest: June 16 to 23
- Steam Summer Sale: June 26 to July 10
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However, if you’re unable to pick out the game you want, Steam has a regular schedule of sale events.
This includes (1) Major Seasonal Sales that take place four times a year, (2) Themed Sales Events that celebrate select categories and genres, (3) Daily, Weeklong, Midweek, and Weekend Deals that regularly give a healthy selection of games a discounted price, (4) Publisher Week and Anniversary Sales which celebrates select developers and franchises.
