Report Netflix Philippines Announces Price Hike Due to New Digital Services Tax

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MANILA, Philippines — Netflix Philippines has notified subscribers of an imminent price increase across all its subscription plans, effective June 1. The adjustment incorporates the 12% value-added tax (VAT) applied to foreign digital service providers under Republic Act 112023, enacted last year by President Ferdinand Marcos Jr.

 

Subscribers received details of the updated pricing as follows:

 

• Mobile Plan: P169 (up from P149)
• Basic Plan: P279 (up from P249)
• Standard Plan: P449 (up from P399)
• Premium Plan: P619 (up from P549)

 

Additionally, Standard plan users will have the option to add an extra member slot for P169 per month, while Premium subscribers can add up to two extra member slots, each also priced at P169 per month. These revised rates are already in effect for new subscribers.

 

The VAT stipulated by RA 112023 applies to all foreign digital services, encompassing streaming platforms, e-marketplaces, and cloud services, irrespective of their physical presence in the Philippines. This legislation aims to level the playing field for local businesses and bring consistency to tax policies governing digital services.

 

Similarly, gaming platform Steam announced it would include the 12% VAT on all games listed in its catalog starting June 1, leading to increased prices.

 

The VAT imposition on foreign digital services signifies a significant shift in the Philippines' approach to digital and streaming platforms, aligning with global trends of taxing online services to ensure fair competition and sufficient tax revenue from the digital economy.

 

  Adapted by ASEAN Now from PhilStar 2025-05-06