@ AC
"So what the EU is saying is that they are not taxing their own people enough and want more money"
I think we should look at it from another angle: rising the price of internet-acquired imported goods and services -e.g. through VAT or a VAT like tax- would make small local sellers and brick shops more competitive. Nowadays these small-ish companies have to compete against Internet companies that don't pay any VAT.
Just removing this difference would at least give a chance to local small startups and brick-and-mortar shops.