PORTUGAL Law and Practice Contributed by: Jorge Silva Martins, João Carminho and Inês Coré, CS’Associados
and ambiguity in the interpretation and practical application of tax regulations can create further uncertainty. 1.3 Taxation of Digital Advertising As a member state of the EU, Portugal’s taxa - tion of digital advertising revenues is governed by the European Union’s rules, ensuring align - ments with broader EU directives. The tax impli - cations for such revenues depend on several factors, including the type of entity earning the revenue (resident or non-resident), the nature of the transaction (B2B or B2C), and the applicable Portuguese tax laws. To ensure compliance with Portuguese tax requirements for digital advertising revenues, companies can adopt several best practices, including: • Leverage tax compliance software: automate VAT calculations, invoicing, and reporting using software compatible with Portuguese requirements; • Ensure SAF-T compliance: configure accounting systems to produce the Standard Audit File for Tax (SAF-T), which is required for audits and e-invoicing compliance: • Maintain accurate customer data: collect and maintain precise information on customer location and VAT status to determine applica - ble tax obligations; and • Keep comprehensive records: retain detailed documentation of transactions, including invoices, contracts, and tax filings, to meet audit and compliance requirements. 1.4 Consumer Protection As digital goods and services increasingly domi - nate the TMT sector, robust consumer protec - tion frameworks have become critical to ensur - ing transparency, fairness, and trust in the digital
marketplace. In Portugal, a combination of EU regulations and national laws creates a compre - hensive legal framework, addressing consumer protection from multiple perspectives within the digital environment. Key legislation includes: • Law No 24/96 (Consumer Protection Law); • Decree-Law No 7/2004 (on certain legal aspects of information society services, in particular electronic commerce, in the internal market); • Law No 41/2004 (on the processing of per - sonal data and privacy protection in electron - ic communications); • Decree-Law No 57/2008 (applicable to unfair commercial practices); • Decree-Law No 166/2013 (applicable to indi - vidual restrictive trade practices); • Decree-Law No 24/2014 (applicable to on distance and off-premises contracts); • Regulation (EU) 2016/679 (General Data Pro - tection Regulation); • Law No 58/2019 (implementing the GDPR in Portugal); • Decree-Law No 84/2021 (which sets out the rights of consumers in case of lack of con - formity of digital goods, content or services); and • Regulation (EU) 2022/2065 (Digital Services Act). Companies operating in the digital economy play a critical role in upholding consumer rights. By adopting the following measures, they can enhance compliance with legal frameworks and foster trust among their consumers: • Transparency: clearly inform consumers about their rights, terms and conditions, and how their data will be processed, in accord - ance with the GDPR and consumer protection laws;
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