Due to VAT, Netflix PH will implement new rates. Here are some details.
NETFLIX PH NEW RATES – The streaming service has informed its users of the changes in terms of rates, which will be implemented starting June 1.
Streaming giant Netflix listed its updated prices for Philippine users on Tuesday, May 6. This is ahead of the implementation of a 12% value-added tax on digital services. This price increase is set to be implemented starting June 1.
The law is imposed on foreign digital service providers such as Netflix, Amazon Prime Video, and Spotify, and other digital services like Shein and Temu. Digital game storefronts like Steam and Epic Games will also have a bump up on their prices.
The new monthly rates
| Php 169.00 monthly from Php 149.00 | Php 279.00 monthly from Php 249.00 | Php 449.00 monthly from Php 399.00 | Php 619.00 monthly from Php 549.00 |
| Supports devices such as phones and tablets | Supports devices such as TVs, computers, phones, and tablets with one device a household can watch at the same time | Supports devices such as TVs, computers, phones, and tablets that two devices a household can watch at the same time | Supports devices such as TVs, computers, phones, and tablets that two devices in a household can watch at the same time |
More services are expected to also adjust their pricing.
Last year, President Ferdinand Marcos Jr. signed into law the 12% value-added tax (VAT) on nonresident digital service providers. According to the president, this is not an imposition of a new tax but a way for BIR to collect VAT from digital services.
Digital services are “any service that is supplied over the internet or other electronic network with the use of information technology and where the supply of the service is essentially automated.”
The law exempts the following:
- Online courses, online seminars, and online trainings rendered by private educational institutions accredited by the Department of Education (DepEd), the Commission on Higher education (CHED), and the Technical Education and Skills Development Authority (TESDA)
- Sale of online subscription-based services to DepEd, CHED, TESDA, and educational institutions recognized by the aforementioned agencies
- Services of bank, non-bank financial intermediaries performing quasi-banking functions, and other non-bank financial intermediaries, including those rendered through the different digital platforms
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