Would you like to offer your services to a company as a VDI, but have some questions about the status of independent seller or the level of taxation?
Who can become a home seller? How do you start a home sales activity? How do you declare your income to the tax authorities or URSSAF? Elora, a company specialized in home fashion sales, tells you more.
A few reminders about the VDI activity
The independent home seller has the status of self-employed entrepreneur. To do this job, they have created their own microenterprise. Depending on whether or not they have chosen to register with the Trade and Companies Register (RCS), they may be attached to the self-employed workers' scheme or the general Social Security scheme. The VDI job can be their main activity or combined with a salaried position in a company. In addition, they generally work directly from their home, which helps save on transport costs. They benefit from Social Security coverage, just like an employee.
The independent status offers many advantages, especially in terms of taxation. The VDI does not need to present a balance sheet and benefits from a flat-rate allowance when declaring the turnover they have achieved.
The impact of the status on VDI retirement is another important point to consider.
Declare your turnover to URSSAF
Each month or each quarter, independents must declare the turnover they have generated to URSSAF. To do this, they simply enter the corresponding amount in the online form provided for this purpose. URSSAF then calculates the social contributions due by the VDI, and the VDI can authorize the direct debit from the platform. Note that in some home sales companies, the HR department itself manages the declaration and payment of social contributions on behalf of the sellers. Please note, declaring your turnover to URSSAF does not exempt the VDI from filing their income tax return. It is also important to know that the independent only charges VAT from a certain level of income.
PREPARE YOUR INCOME TAX RETURN
If you work or wish to work in home sales, be aware that it is mandatory, every year in May, to complete your income tax return. This process allows the tax office to calculate the taxable income of an independent and to claim the amount due for income tax. Since VDI taxation is simplified, it is possible to fill out the form on the tax website independently or to use the services of a professional.
Before starting, it is essential to know whether you are registered under "industrial or commercial profits" (BIC) or "non-commercial profits" (BNC) and to have all your identification details (address of your registered office/tax address, whether it is your home or an office, SIRET, etc.).
You also need to calculate the total turnover achieved during the previous year if you are already under VDI status. Once your income is calculated and your status verified, download the "2042-C Pro" document for non-salaried professions. Note that if you collaborate with several companies, it is essential to include all your income on your return. The tax payment can of course be made monthly, just like for an employee.
WHICH SECTION TO FILL IN TO DECLARE VDI INCOME?
If you want to become a home seller, be aware that there are two scenarios for declaring income.
- If your work as a VDI is carried out regularly with the aim of generating income, fill in the section "Professional industrial and commercial income" and box 5KO (or 5LO) "sales of goods" on the tax form.
- If your activity as an independent home seller is occasional, fill in the section "Other non-professional industrial and commercial income" and box 5NO (or 5OO) "sales of goods" on your income tax return.
A tax allowance may be applied after you submit your return.
DECLARE YOUR COMMISSIONS
As a home seller, you receive commissions on the volume of your sales and the sales of your team members. At Elora, the VDI contract offered is that of VDI agent. A commission is set and paid to you based on your sales.
- If your VDI job is regular, declare your income in the section "professional industrial and commercial income", in box 5KP (or 5LP) "service provision".
- If you have chosen to be a VDI occasionally, declare this amount in the section "other non-professional industrial and commercial income", in box 5NP (or 5OP) "service provision".
Note that some companies offer buyer-reseller contracts, which, unlike the agent contract, require the VDI to purchase the collection in advance that they will present to their clients.
Would you like to know more about the job of independent home seller before starting your activity? Would you like to know what benefits a VDI has working for Elora? Would you like to collaborate with a brand that helps you grow your turnover by training you? Contact the Elora team now by filling out the form on the Contact page of our website.
Find out more about the job of Fashion Consultant at Elora (fashion advisor).
