If it sounds extreme, it’s not. It’s a sales tax, much like the VAT, which is universal throughout the European Union.
The above article presents this as something unprecedented, but it is not, and the proximate cause is because any number of countries in the EU, most notoriously Ireland and Luxembourg, compete economically by being tax havens.
This is a simple and elegant solution, and it is in no way protectionist or discriminatory.
Free trade should not be synonymous with tax evasion.