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 of the seller and the customer, unlike distance selling (e-commerce, for example).

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.).

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).

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 ofsamples, catalogs or gifts for customers.

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.

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 door-to-door seller (IDV) must report its activity on the website of 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 €23,550

Where these conditions are fulfilled, entry in one of the registers shall be obligatory. It must take place from 1^er 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).

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).

The independent home seller can deduct travel expenses taxable income.

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.

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 €7,772. 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).

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.