The pandemic has led to increased consumption of digital services
New tax challenges arise daily as a result of emerging and continuous innovation, new technology, and business models that test the boundaries of the tax status quo. Countries and organisations are trying to be at the forefront of tax innovation by researching and developing mechanisms to address these challenges. Portugal has recently given its first contribution, although small, to this pursuit: a Portuguese ‘Netflix tax’, a new levy that aims to support Portuguese cinema and audiovisual production with its proceeds.
In this article, the main effects of this new levy are summarised and there is also discussion on how this could be a step towards the introduction of a digital services tax (DST) in Portugal.