Talks are underway to find a more permanent solution.
- Over 3,000 business contracts for digital services are created between the company and business users in a taxable year.
The EU tax plan will target mainly USA companies with worldwide annual turnover above €750million ($924 million), such as Facebook, Google, Twitter, Airbnb and Uber.
Aware that the tax proposal was coming, U.S. Treasury secretary Steven Mnuchin last week said "The U.S. firmly opposes proposals by any country to single out digital companies".
"Our pre-internet rules don't allow our member states to tax digital companies operating in Europe when they have little or no physical presence here", EU Economy Commissioner Pierre Moscovici said.
EC and European Union officials have long argued that Big Tech has proven overly talented in exploiting tax loopholes in low-tax countries such as Ireland and Luxembourg to drop their tax bills substantially.
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But the 28 European Union nations, which must endorse the plan, are divided and it might never see the light of day.
There is likely to be push-back from Taoiseach Leo Varadkar when he arrives for the summit of EU leaders in Brussels on Thursday and talk from the smaller states during the two-day European Council that this might be something that the EU will live to regret.
Some opponents also see the plan as an ill-timed move that could backfire by further undermining already-tricky relations with the U.S.
US President Donald Trump said "real friends" could apply for an exemption when he announced his intention to put tariffs 25% on steel and 10% on aluminium two weeks ago. Trump's threat to pull out of the Iran nuclear deal would also hurt European businesses.
The company says it pays all the taxes required both in the UK and every other country it operates in and at the time, Amazon said: 'As of May 1, 2915, Amazon EU Sarl is recording retail sales made to customers in the UK through the UK branch.
But the Computer and Communications Industry Association immediately branded the scheme "discriminatory and harmful".
"We encourage the European Union to seek global tax reform through the OECD rather than pursuing discriminatory, unilateral actions with risks to Europe's digital economy and worldwide trade relations". These are bad times for globalization: China has already announced that re will be reprisals after USA measures, and Europe is on sidelines, but it shoots on or flanks, with digital rate destined in part to technological multinationals American or ads in Berlin of fines to companies that breach laws of protection of data: Facebook and case Cambridge Analytica.