On July 15, 2023, the European Union and the United States reached an agreement on e-commerce. The agreement, which is still subject to ratification by the parliaments of the two blocs, includes a number of measures to facilitate e-commerce between the two economic blocs.
Among the most important measures of the agreement are the following:
VAT simplification for e-commerce companies.
E-commerce companies that sell goods to consumers in the European Union or the United States will be able to choose between two systems for declaring and paying VAT:
- The single-window system, which is the same as that established in the European Union directive.
- A country-of-origin system, in which the e-commerce company would declare and pay VAT in the country of origin of the goods.
The agreement establishes rules to protect consumers in e-commerce, such as the obligation of e-commerce companies to provide clear information about the products and services they sell, and the obligation to respect consumer rights, such as the right to return a product if they are not satisfied with it.
The consensus prohibits discriminatory commercial practices in e-commerce, such as preferential treatment for domestic companies over foreign companies.
The agreement between the European Union and the United States is an important step to facilitate e-commerce between the two blocs. It is expected that the agreement will contribute to increasing e-commerce between the two blocs, which would benefit businesses and consumers on both sides of the Atlantic.
Impact of the agreement
It is expected that the agreement between the European Union and the United States will have a positive impact on e-commerce between the two blocs. E-commerce companies will be able to benefit from the simplification of VAT and the rules that protect consumers. Consumers will also benefit from the agreement, as they will have more confidence in e-commerce companies and be able to be sure that they are treated fairly.
The agreement could also contribute to increasing competition in e-commerce. The prohibition of discriminatory commercial practices could help European and American companies compete on an equal footing.
The agreement still needs to be ratified by the parliaments of the European Union and the United States. It is expected that the agreement will be ratified in 2024. Once the agreement is ratified, it will enter into force in 2025.
The agreement between the European Union and the United States is a significant development in the global e-commerce landscape. The agreement is expected to make it easier for businesses to sell goods and services to consumers in both the European Union and the United States. This could lead to increased competition and lower prices for consumers.
The agreement also includes a number of measures to protect consumers. These measures are designed to ensure that consumers have access to clear and accurate information about the products and services they are buying. They also protect consumers’ rights to return goods if they are not satisfied with them.
The agreement is a positive development for businesses and consumers in both the European Union and the United States. It is expected to lead to increased e-commerce and improved consumer protection.
It is expected to lead to increased e-commerce and improved consumer protection.