TBH the bad idea in the EU scheme is allowing different countries to have different taxes on digital sales. There should be one rate across the whole Union, to be paid to the Union itself. This can then be redistributed to national governments in various ways, or reinvested in digital infrastructure that benefits the whole continent.

Enforcing fair taxation is not a bad idea, making it awkward is.

However, within the EU they also have a nice (or at least automatable) online system where small businesses can process inter-country VAT sales declarations through their own country's tax system. It's not particularly onerous for small businesses to sell across borders to other countries within the EU.