Become an independent home seller (VDI)

Verified 01 January 2024 - Legal and Administrative Information Directorate (Prime Minister), Ministry of Economy

The door-to-door selling, also called "door-to-door", is to move at the customer's home or workplace to sell products or services. The independent home seller (VDI) carries on business autonomous, without subordinate relationship with the company that entrusts it with the sale of its products or services.

Doorstep selling is the subject of a specific regulation, consumer protection.

The door-to-door selling involves soliciting a customer in a place not normally intended for trade to sell products or services. The customer can be solicited at his domicile, on its workplace or during a excursion organized by the seller (e.g. tour travel).

Door-to-door selling involves simultaneous physical presence the seller and the customer (unlike distance selling).

The home seller acts asmiddleman between the customer-consumer and the company of direct sale whose products he distributes (e.g. ready-to-wear, jewelry, cosmetics, household appliances, windows, insulation, solar panels, electricity, gas, etc.).

FYI  

The independent home seller (VDI) operates independently, without subordinate relationship with the company that calls on its services. Labor law not applicable to it. It should not be confused with the home seller salaried worker who has an employment contract and has the status of VRP: titleContent.

Doorstep selling is a business practice strictly controlled by law. Thus, door-to-door selling excludes the following cases:

  • Sale by telephone or internet (specific distance selling scheme)
  • Sale at markets, trade fairs, fairs or any place usually intended for trade
  • Sale of certain products: health services, food, gambling or financial products (banks, savings, insurance).

Warning  

Doorstep selling is forbidden where the consumer has clearly and unambiguously indicated that he or she does not wish to be visited. Violating this prohibition is punishable by1 year imprisonment and €150,000 fine. It is also forbidden to make a purchase from another independent home seller.

The independent door-to-door salesperson (IDV) must enter into a contract with a direct sales company that entrusts him with the sale of his products or services.

It exists 2 different types of contracts :

  • VDI Contract representative
  • VDI Contract buyer-reseller

The sources of income of the home seller differ depending on the nature of the contract.

proxy VDI

Under an agent VDI contract, the company is the principal and the home seller is the representative. In other words, the company grants the seller the right to take orders in the name and on behalf of the company.

Here, the company remains the owner of its stocks. The door-to-door salesperson places orders to her as her customers request them. The seller therefore has no need to buy merchandise (no investment by him for inventory). It markets the company's products or services at its "list" price.

Most often, inventory management, deliveries and receipts are handled by the company of sale.

The remuneration of the authorized representative VDI shall take the form of commissions paid by the company on the basis of its turnover.

Buyer-Reseller VDI

Under a VDI buyer-reseller contract, the home seller has a “distribution license”. He buy inventory from the company for resale to its customers using its own purchase orders. He sets the resale price, within the maximum recommended price.

Here, VDI takes a risk by buying products it is not sure it can resell. They may be required to manage inventory, deliveries and receipts.

The remuneration of the VDI buyer-reseller takes the form of margins corresponding to the difference between the purchase price of the products from the company and the resale price to the customer.

The independent home seller (VDI) uses the name, logo or trademark the company entrusting it with the sale of its products or services. However, the independent home seller exercises independent.

He is not the holder of an employment contract in respect of that activity and exercises without subordinate relationship with the company. However, it does have a written contract specifying, in particular, his status as self-employed person, the nature of those services, the conditions governing the exercise of those services and the detailed rules governing remuneration.

It freely manages the organization of its work and determines its level of activity and financial objectives alone without the company being able to give it directives.

However, the company can offer assistance at start-up and/or in-service:

  • Provision of documents necessary for the activity (purchase orders, technical data sheets of the products sold)
  • Advice on product inventory management and provision of accounting models
  • Provision of specific training
  • Promotional and advertising actions in the form of samples, catalogs or gifts intended for customers.

FYI  

In return, the home seller must preserve the image of the company. In particular, he must make a presentation of the products or services marketed in accordance with the technical and descriptive guides that the company has provided him.

The company may invite him to meetings to exchange information on the state of the market, customer needs, competitive situation, network results or any other information useful for the exercise of the profession.

The company may also communicate a recommended public tariff or a maximum price above which the product cannot be sold to the consumer. On the other hand, it cannot impose on it a geographical sales area.

He is can accumulate the activity of self-employed home seller with another activity (employee or self-employed). Generally, home selling is carried out as a secondary activity, in addition to a core activity.

FYI  

An independent door-to-door salesperson may carry on the door-to-door sale on behalf of several direct selling companies provided that they are not in direct competition. If not, they must obtain their prior consent.

However, account must be taken of the incompatibilities related to certain regulated liberal professions (doctor, lawyer, bailiff, notary, architect, accountant, court administrator, etc.).

Other incompatibilities may be linked to the status of official, the length of working time or the existence of a exclusivity clause in the employment contract.

Declaration of activity

The independent home seller (VDI) has a specific status. It must report its activity online on the company formalities office, in a 15-day period after the start of its activity.

Company Formalities Window

Registration with the SCN or SFCR

The independent home seller must register to SCR: titleContent or at SFCR: titleContent, if it completes the 2 conditions following:

  • He practiced for 3 consecutive calendar yearseven intermittently
  • For each of those years, he earned an annual gross remuneration of more than €23,184

Where these conditions are fulfilled, entry in one of the registers shall be obligatory. It must take place from 1er January following the 3 calendar years.

The choice of the register is guided by the nature of the contract concluded with the company of direct sale (agent or buyer/reseller).

proxy VDI

Home Seller must sign up for SFCR: titleContent. It is granted the status ofsales agent.

The application for registration must be made online, on the website of the company formalities office.

Company Formalities Window

Buyer-Reseller VDI

Home Seller must sign up for SCR: titleContent. It shall be granted the status of trader.

The application for registration must be made online, on the website of the company formalities office.

Company Formalities Window

FYI  

As of registration with the SCN or SFCR, the independent home seller no longer equated with an employee with regard to social security. It is therefore the responsibility of the general scheme for self-employed persons (SSA).

Income taxation

From a tax point of view, the independent home seller (IDV) is taxed as a self-employed person. It is therefore subject to theincome tax (IR). The method of taxation varies according to the type of seller (agent or buyer-reseller).

proxy VDI

The income of the authorized VDI shall consist of commissions paid by the company on the basis of turnover.

He declares his income in non-commercial profits (NBC) and has a abatement of 34% for business expenses.

Buyer-Reseller VDI

The income of the VDI buyer-reseller consists of margins from the resale of the company's goods or services.

He declares his income in Industrial and Commercial Benefits (BIC) and has a abatement of 71% for business expenses.

The independent home seller can deduct travel expenses taxable income.

Please note

The resale company shall establish a quarterly advance payment note which shall state the remuneration paid and the amount of social security contributions.

VAT exemption

The independent home seller can benefit from the exemption from VAT and be exempt from VAT. In order to do so, it must respect a certain turnover threshold.

General case

The home seller is not liable for VAT if its turnover in the previous year (N-1) is less than the following amount:

  • €36,800 for a representative
  • €91,900 for a buyer-reseller

In this case, the order forms, invoices and advance payment slips must bear the indication " VAT not applicable, Article 293b of the CGI ”.

Martinique and Reunion Island

The home seller is not not liable for payment of VAT if its turnover in the previous year (N-1) is less than the following amount:

  • €50,000 for a representative
  • €100,000 for a buyer-reseller

In this case, the order forms, invoices and advance payment slips must bear the indication " VAT not applicable, Article 293b of the CGI ”.

Company Property Tax (CFE)

The company property tax (CFE) is one local tax due from any company and person engaged in self-employed professional activity.

The independent door-to-door salesperson must pay the CFE if his annual gross remuneration (provided by the door-to-door activity) is greater than €7,651. Below that, he is not liable for that tax.

Social security system

The social security scheme of the self-employed homeseller (VDI) varies whether or not he is registered in a professional register (SCR: titleContent or SFCR: titleContent).

Unregistered seller

With regard to social security, the independent home seller is treated as an employee and depends on general social security scheme.

Seller registered to the RCS or RSAC

With regard to social security, the independent home seller depends on the general arrangements for Self-employed persons (SFTs).

Social contributions

It is the company selling directly that makes the declarations and settles the social contributions every quarter.

The method of calculating social contributions varies based on the amount of gross revenue per quarter.

Please note

Gross income must be taken into account before the abatement tax of 10% for business expenses.

Less than €606

The independent home seller has no social security contributions to be paid.

Between €606 and €1,616

The amount of contributions is flat rate, based on gross revenue per quarter.

Please note

Income must be considered before the abatement tax of 10% to take account of the professional costs incurred by the home seller.

Tableau - Social security contributions flat rate based on gross income per quarter

Gross revenue per quarter

Flat rate contribution per quarter

at the expense of the home seller

From €639 to €1,278

€19

From €1,278 to €1,704

€57

Between €1,616 and €5,454

Contributions shall be calculated on the basis of a plate flat rate with application of ordinary rate of duty.

The amount of this base depends on the gross revenue per quarter.

Please note

Income should be considered after the abatement tax of 10% to take account of the professional costs incurred by the home seller.

Tableau - Amount of the flat-rate basis of assessment in relation to gross income per quarter

Gross revenue per quarter

Flat-rate basis per quarter

Equal to or greater than €1,704 and less than €2,130

€746

Equal to or greater than €2,130 and less than €2,556

€959

Equal to or greater than €2,556 and less than €2,769

€1,172

Equal to or greater than €2,769 and less than €3,195

€1,491

Equal to or greater than €3,195 and less than €3,408

€1,704

Equal to or greater than €3,408 and less than €3,834

€2,024

Equal to or greater than €3,834 and less than €4,047

€2,343

Equal to or greater than €4,047 and less than €4,473

€2,876

Equal to or greater than €4,473 and less than €4,686

€3,195

Equal to or greater than €4,686 and less than €5,112

€3,728

Equal to or greater than €5,112 and less than €5,325

€4,154

Equal to or greater than €5,325 and less than €5,751

€4,580

From €5,454

Social security contributions are calculated in relation to the real income of the home seller (no reduced flat-rate base), with application of ordinary rate of duty.

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