Comparing Streaming Service Rates Before and After VAT: Impact of RA 12023

Entertainment fans in the Philippines, listen up! President Ferdinand “Bongbong” Marcos Jr. recently signed a new law that affects popular streaming platforms. Republic Act 12023 now imposes a 12% value-added tax (VAT) on digital services from both resident and non-resident providers, like Netflix and HBO Max.

This change means that starting June 1, 2025, Netflix Philippines has raised its subscription prices across the board. Here’s the breakdown of the new rates for each plan: Mobile: P169 (up from P149), Basic: P279 (up from P249), Standard: P449 (up from P399), and Premium: P619 (up from P549).

And it’s not just Netflix. Other platforms like Prime Video and HBO Max also offer competitive rates, with some starting as low as P149 for mobile subscriptions.

Apple TV+ has already implemented the 12% VAT on its plans, as shown in a receipt from one Philstar.com employee, who saw an added charge of P39.54 for VAT, bringing the total to P369 per month.

Similarly, a purchase on the gaming platform Steam showed a price increase due to the VAT. For example, a game priced at P378.35 saw an additional cost of P45.50 with the VAT, totaling P423.75.

But not every streaming service is affected by the VAT change. Disney+, for instance, already includes VAT in its subscription prices. They even have a promo until June 26 offering 75% off, making the Basic Monthly plan only P62.25.

So, keep an eye on your favorite streaming services as they adjust to the new tax laws in the Philippines. And remember, these changes are all in line with the recent legislation, so you can stay informed about what to expect when enjoying your favorite movies and shows online.