Netflix bumps up prices ahead of Philippine digital tax implementation

Heads up, Filipino subscribers! Streaming giant Netflix recently updated its pricing structure for users in the Philippines, effective Tuesday, May 6.

This adjustment comes as the country prepares for the implementation of a 12% Value Added Tax (VAT) specifically targeting nonresident digital service providers. This new tax is set to take effect starting June 1.

The law impacts a wide range of foreign digital platforms, not just Netflix. Expect to see similar tax implications for services like Amazon Prime Video, Spotify, online shopping sites such as Shein and Temu, and digital game marketplaces like Steam and Epic Games.

Here's a breakdown of the new monthly rates you'll see for Netflix subscriptions in the Philippines: The Mobile plan goes from P149 to P169, the Basic plan increases from P249 to P279, the Standard plan changes from P399 to P449, and the Premium tier moves from P549 to P619 per month.

Additionally, if you add extra member slots to your account, the monthly cost for each slot will also increase, moving from P149 to P169.

With the June 1 deadline for the VAT implementation fast approaching, it's anticipated that other digital service providers operating in the Philippines will also be announcing their own price adjustments in the near future.