Design Applications Change Tax Model for Filipino Consumers, Adobe to Increase Prices

Design Applications Change Tax Model for Filipino Consumers, Adobe to Increase Prices
Image credits: Design by Freepik

Canva and Adobe are adding a 12% VAT to their design software because of new digital tax regulations.

These apps now collect 12% VAT under the Value-Added Tax (VAT) on Digital Services Law, signed by President Ferdinand R. Marcos Jr. on October 2, 2024 [1]. Digital providers, even those without a physical presence in the country, will now be taxed under this legislation.

According to an email from Adobe, users will now be charged with an additional 12% VAT on their purchases starting June 24. This price increase will raise the monthly cost of an Adobe Photoshop or Premiere Pro annual subscription from ₱1,295 to ₱1,450. Similarly, the monthly Adobe Acrobat subscription will rise from ₱732 to ₱820.

Adobe’s subscription update
Adobe’s subscription update

Meanwhile, Canva did not implement price changes for Filipino consumers they already added 12% VAT in the subscription price to comply with the digital tax law.

Canva’s update on subscription invoice
Canva’s update on subscription invoice

The Department of Finance estimates that the new tax law will bring in ₱102.12 billion in tax revenue from 2025 to 2028 [2].

References:

[1] https://www.rappler.com/business/marcos-signs-law-vat-foreign-digital-services/
[2] https://www.abs-cbn.com/news/business/2025/5/6/netflix-to-increase-prices-in-june-as-ph-digital-tax-law-takes-effect-0911