Biz Buzz: Will new digital tax affect Pinoy gamers? Nintendo distributor says no

The local distributor of Nintendo video games believes that the Philippine government’s move to impose a 12 percent value-added tax (VAT) on digital services and products offered by foreign firms should not apply to games sold at their online electronic shop.

VST ECS Phils., Inc digital marketing executive Victoria Palomar told Biz Buzz in a recent interview that the current setup of the Nintendo eShop, where Nintendo Switch and the Android version of their games are sold, should exempt them from the new tax measure.

“Technically, there is no e-shop in the Philippines. Not unless you are logged in using a different country in Asia,” Palomar said.

Currently, there is no Philippine selection in the list of countries when creating a Nintendo account, which is needed to buy from its online store.

PlayStation Store, Sony’s counterpart online shop, also has the same setup, with local gamers only able to create accounts using other countries.

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Still, only time will tell if the Philippine government will actually move to tax these video game companies, with the implementing rules and regulations of the new law hopefully clearing things up once the framework is out.

Unfortunately, a 12-percent VAT will likely cause a substantial price increase for the digital versions of Nintendo and Sony video games, which currently retail for around $60 for first party and triple A games.