Before, after VAT: Comparing streaming service rates affected by RA 12023
MANILA, Philippines — President Ferdinand "Bongbong" Marcos Jr. signed into law a measure taxing foreign digital services, including popular streaming platforms, such as Netflix and HBO Max.
Republic Act 12023 imposes a 12% value-added tax (VAT) on digital services provided by resident and non-resident digital service providers, regardless of whether they have a physical presence in the Philippines.
The Department of Finance expects the imposition of the VAT to generate around P83.8 billion from 2024 to 2028. Lawmakers plan to allocate 5% of this amount for the development of local creative industries.
Netflix raises prices
As of June 1, 2025, Netflix Philippines increased the prices across all its subscription plans.
The leading streaming platform's new monthly rates are:
- Mobile: P169 (up from P149)
- Basic: P279 (up from P249)
- Standard: P449 (up from P399)
- Premium: P619 (up from P549)
Other streaming platforms Prime Video and HBO Max could soon follow, as both are offering monthly mobile subscriptions that start at P149.
HBO Max also has a Standard plan (P269 1-month, P1,890 annual) and an Ultimate plan (P399 1-month, P2,790 annual), which would go up to around P300, P2,120, and P450, P3,125, respectively, once the 12% VAT is applied.
Prime Video, meanwhile, has an annual plan worth P1,390, which would go up to P1,559 after VAT.
Apple TV+, Steam follow suit
Another streaming platform, Apple TV+, appears to have already applied the 12% VAT on its subscription plans.
As seen in this receipt of one Philstar.com employee, their monthly Apple TV+ has an extra P39.54 charge for VAT, bringing the new payment up to P369.
A different Philstar.com staff member purchased a game from the digital video game distribution platform Steam and also saw the application of a VAT.
The game purchased on June 1 is worth P378.35, but with a 12% VAT worth P45.50 it goes up to P423.75.
The hike in price is noticeable compared to a year before when the same employee purchased a game on Steam for P398.97 without VAT.
Disney+ already applies VAT
Some streaming platforms won't see any changes to their subscription plans as they already apply VAT at the time of purchase.
For example, the monthly (P249 Basic, P519 Premium) and annual (P1,899 Basic, P3,999 Premium) plan prices of Disney+ are VAT inclusive.
In fact, Disney+ has an ongoing promo until June 26 where Filipinos can get 75% off their Disney+ subscription:
- Basic Monthly: P62.25
- Basic Annual: P497.50
- Premium Monthly: P129.75
- Premium Annual: P1,047.50
— with reports from Cristina Chi
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