Manila Times
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Thursday, Sep 18, 2025
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Netflix Implements Price Increase in the Philippines Due to New Digital VAT Law
Starting June 1, Netflix increases subscription prices across all plans in response to a 12% value-added tax on foreign digital services.
Netflix Philippines has announced a price increase across all subscription plans effective June 1, reflecting the implementation of a 12% value-added tax (VAT) imposed on foreign digital service providers under the recently enacted Republic Act 112023.
This law was signed into legislation by President Ferdinand Marcos Jr. in 2022.
In a notification sent to subscribers, Netflix outlined the new monthly rates as follows: the Mobile plan will rise from P149 to P169, the Basic plan will increase from P249 to P279, the Standard plan will move from P399 to P449, and the Premium plan will escalate from P549 to P619.
Subscribers of the Standard plan will have the option to add one extra member slot for P169 per month, while Premium plan users can add up to two extra member slots at the same monthly rate of P169 each.
These new pricing structures will also apply to new subscribers as of the implementation date.
In addition, the digital services tax under RA 112023 extends to all foreign online services, which includes various sectors such as streaming platforms, e-marketplaces, and cloud services, regardless of their physical presence in the Philippines.
This regulatory change follows a similar announcement from the gaming marketplace Steam, which confirmed that it will incorporate the same 12% VAT into the pricing of its games starting June 1, thus affecting consumer costs in the digital gaming sector.
This law was signed into legislation by President Ferdinand Marcos Jr. in 2022.
In a notification sent to subscribers, Netflix outlined the new monthly rates as follows: the Mobile plan will rise from P149 to P169, the Basic plan will increase from P249 to P279, the Standard plan will move from P399 to P449, and the Premium plan will escalate from P549 to P619.
Subscribers of the Standard plan will have the option to add one extra member slot for P169 per month, while Premium plan users can add up to two extra member slots at the same monthly rate of P169 each.
These new pricing structures will also apply to new subscribers as of the implementation date.
In addition, the digital services tax under RA 112023 extends to all foreign online services, which includes various sectors such as streaming platforms, e-marketplaces, and cloud services, regardless of their physical presence in the Philippines.
This regulatory change follows a similar announcement from the gaming marketplace Steam, which confirmed that it will incorporate the same 12% VAT into the pricing of its games starting June 1, thus affecting consumer costs in the digital gaming sector.
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