Digital services have become deeply embedded in our daily routines—from streaming our favorite shows and music, to shopping online and storing files in the cloud. These platforms not only help us manage tasks efficiently, but also provide entertainment for the entire family.
However, starting in June 2025, a new tax law will introduce a 12% Value-Added Tax (VAT) on digital services consumed in the Philippines. This includes popular platforms like Netflix, Disney+, Amazon, and Shopee, among others.
ALSO READ: Top 10 Kids And Family TV Shows To Watch In 2024
What's Changing? A New Tax Law on Digital Services
Last year, President Ferdinand Marcos Jr. signed into law Republic Act No. 12023, which imposes a 12% value-added tax (VAT) on digital services consumed in the Philippines. This includes popular platforms like Netflix, Disney+, YouTube Premium, Spotify, Shopee, Lazada, and Amazon.
The goal is to level the playing field between local and foreign digital service providers and generate revenue for public projects such as classrooms, roads, and health centers.
Which Services Are Affected?
Here's a quick rundown of the digital services that will be impacted—and how that could personally affect your entire family:
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Streaming Services: Netflix, Disney+, YouTube Premium, HBO Go, Spotify, and Amazon Prime Video.
Netflix has already increased its prices. Starting June 1, the Basic Plan will go from P249 to P279—exactly a 12% bump. The Standard Plan will rise to P449 per month, while the Premium Plan will see a steeper hike, reaching P619 per month.As many families rely on Netflix as their go-to streaming platform for everything from cartoons to drama series, this change is worth noting.
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Online Shopping & Marketplaces: Shopee, Lazada, Shein, Amazon, Shopify.
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You might also feel this in your operating costs if you run a small business online.
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Cloud Storage & Software: Google Drive, Microsoft OneDrive, Dropbox, Adobe Creative Cloud, AWS.
This is especially noteworthy for parents who freelance, work remotely, or manage small businesses.watch now -
Gaming Platforms: Steam, PlayStation Store, Epic Games.
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If your kids are into online gaming, prepare for slight price increases on in-game purchases or subscriptions.
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Freelancing Platforms: Upwork, Fiverr, Toptal.
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For side-hustling moms and dads, keep an eye on your service fees or billing changes.
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Online Learning Tools: Coursera, LinkedIn Learning.
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While some educational services may remain exempt, platforms offering paid digital content may start reflecting VAT.
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Why This Matters for Families
While a 12% increase might not seem too big on paper, these little changes add up, especially for households juggling multiple subscriptions. More than ever, budgeting will be key in keeping our digital expenses in check.
On the brighter side, the government says this move is expected to raise over P100 billion in revenue over five years, part of which will fund educational and community development initiatives.
What Can Parents Do Now?
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Review all subscriptions: List out your digital services. Which ones are essentials? Which ones can be paused or dropped for now?
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Explain to older kids: This can be a great way to teach tweens and teens about money management and how taxes work.
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Watch for announcements: Not all platforms have adjusted pricing yet, so stay tuned for updates from your providers.
This shift shows how economic changes, like new taxes, can trickle down to our homes in real, tangible ways. As always, staying informed and proactively managing your family's budget is the best response.
Click here to learn more about the 'We, not me' mindset when it comes to budgeting for couples.
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