PSA: Your Monthly Subscriptions Could Get More Expensive In June

Here are the platforms affected by the new law!

Published on May 5, 2025

PHOTO: Pexels

At this point, chances are you're subscribed to at least one digital service, whether it's Netflix, Spotify, or YouTube Premium. Digital platforms have become such a huge part of our everyday lives (yes, even our work life!) that we hardly go a day without them.

But ICYDK, change is coming—and it might show up on your next billing statement.

President Ferdinand Marcos Jr. has signed into law a 12% VAT on digital services consumed in the Philippines. Under this law, streaming, gaming, freelancing, and other online platforms that offer paid digital services are now subject to tax. The Bureau of Internal Revenue (BIR) has ordered all affected platforms to register for VAT by June 1, so don't be surprised if you start seeing price adjustments soon.

Not all platforms have made official announcements yet, but a few already have. And if you're still confused about how this might affect your subscriptions, here's a quick look at the platforms likely to be impacted.

Note: As the implementation date approaches, it's advisable for users to review their subscriptions and anticipate adjustments in billing due to the 12% VAT. For the most accurate information, consult the official announcements from each service provider.

The Republic Act (RA) 12023 lays out the scope of digital services now subject to the new 12% VAT, and yes, that includes your favorite streaming platforms. Netflix, Disney+, Spotify, HBO Go, YouTube Premium, and Amazon Prime Video all fall under this category. While most platforms have yet to announce price changes, Netflix has already released its updated subscription rates—and these have really gone up!

Previously, the Basic plan was priced at PHP 249. Under the new pricing, it's now PHP 279, which is a PHP 30 hike or exactly 12% more than the previous cost.

The Standard plan rose from PHP 399 to PHP 449 while the Premium plan jumped from PHP 549 to PHP 619, both reflecting the same 12% adjustment in line with the new VAT.

Shopping and selling online might feel second nature to us by now, but platforms facilitating these transactions will also be feeling the heat of the new 12% VAT. And if you're running a small online business or side hustle, don't be surprised if your next invoice is a little, well, higher. Shopify, Shein, and other e-commerce platforms such as Lazada and Shopee fall under this category.

For businesses and individuals relying on cloud platforms like Amazon Web Services (AWS), Adobe Creative Cloud, Dropbox, Microsoft OneDrive, or Google Cloud, this VAT update is crucial. While most of these platforms haven't released formal statements about a price hike in response to the Philippine VAT rollout, they are covered under the law. So whether you're using these tools for file storage, creative work, or cloud hosting, you might see the additional 12% VAT reflected in your upcoming billing cycles.

Seems like no one is exempted for the pricing adjustments on digital services, especially if you're in the digital advertising field. With the implementation of the new 12% VAT on foreign-provided digital services in the Philippines, major platforms commonly used in the industry are expected to be affected. These include Adobe Creative Cloud, the Apple App Store, Google Play Store, and Microsoft services.

Other digital services including gaming platforms, freelancing websites, and online learning platforms are also covered under the new 12% VAT law. Earlier this month, popular gaming platform Steam confirmed that it will begin charging the VAT on all purchases made in the Philippines starting June 1. This means in-game purchases, downloadable content, and subscription services may reflect higher prices moving forward.

And if you're a freelancer using platforms like Upwork, Fiverr, or Toptal to earn and manage side hustles, you might also see adjustments in your service fees or billing. These platforms are classified as digital services under the law and are therefore subject to VAT as well.

The same applies to online learning platforms like Coursera and LinkedIn Learning, which provide digital training and courses. While these platforms haven’t released official advisories yet, the additional VAT could soon be reflected in course pricing, monthly plans, or certification fees.

How are you feeling about this new development, CG? Even if you haven't seen the new prices reflected in your subscriptions, it's best to start planning and saving(!) early to prepare for this change in your budget.

PSA: A New Passport Law Allows Women To Drop Their Husband's Surname On Their ID

Just a friendly FYI in case you need it!

READ HERE

The New Unified PWD ID System Comes With Both Physical And Digital Versions

A full nationwide rollout is anticipated by July 2025!

READ HERE

This New House Bill Could Grant Queer Couples The Right To Make Medical Decisions For Each Other

Hopefully, this bill becomes a law soon!

READ HERE