Heads up! Starting June 2, 2025, a new 12% Value-Added Tax (VAT) applies to digital content and services in the Philippines. This change is in compliance with Republic Act No. 12023 and its implementing regulations, aiming to level the playing field for local and foreign digital service providers.

Wondering how this affects your next top-up on Codashop? Let’s break it down.

What’s changing?

Starting June 2, 2025, a 12% VAT (Value-Added Tax) is now required on digital services in the Philippines. This applies to things like game top-ups, in-game items, or subscriptions paid through Coda.

Why is there VAT now?

The Philippine government passed a law to make sure foreign and local digital services are taxed fairly—just like physical products in stores.

How does this affect me?

All purchases made through Codashop include the mandatory 12% VAT. This means the price you see upfront already includes VAT—no surprises at checkout. You’ll continue to see a clear breakdown of the total amount before you pay.

Example: A ₱53.20 top-up now already includes VAT (₱42.41 base + 12% VAT).

Is this from Coda or the game?

Nope—it’s not a fee from Coda or your favorite game. It’s a government tax that all payment platforms and services are now required to follow.

Can I avoid paying this VAT?

No. The 12% VAT is a mandatory tax imposed by the Philippine government on digital content and services. As a compliant platform, Codashop is required to collect and remit this tax.

Do I need to do anything?

No action is needed. Codashop will automatically calculate and apply the VAT at checkout. 

What if I have more questions?

If you have questions about the VAT, you can contact our customer support team for help. You can also refer to the official pronouncements from the Bureau of Internal Revenue (BIR) for detailed information on Republic Act No. 12023 and its implementing regulations (e.g., RR No. 3-2025, RR No. 14-2025, and RMC No. 47-2025).