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Sure, but when we pay our AWS bills, that money still goes to Amazon which is US-based, even though we servers we rent are in Frankfurt.


Does it actually go to the US corporation, or to some European subsidiary?


For hyperscalers, to some EU subsidiary first. Then it depends on the transfer pricing applied. https://en.wikipedia.org/wiki/Transfer_pricing

You can tax the "intellectual property" payments that the subsidiaries make to the USA parent, or you can pick some other criterion. Or you can just create a new sales tax for any one part of the transactions you want. It's tricky but it can be done.




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