How do I declare my VDI income?

How do I file my tax return as a VDI?

Before you start filing your VDI tax return, you need to know whether you are registered for "industrial or commercial profits" or for "non-commercial profits". You also need to have with you all the identification details relating to the business, such as :

• address
• sIRET number.

You should also take stock of the total sales achieved during the previous year, if you already had VDI status. It is not uncommon for the company to which you are attached as a VDI to provide you with regular summaries of your commissions. This generally makes your work easier. You just need to make sure there are no mistakes.

Which forms should I use?

Once your income has been calculated and your status has been verified, you will need to complete form 2042-C Pro (or Cerfa form 11222*23), which is mainly intended for declaring self-employed income, including that of a VDI. This form will enable you to indicate the amount of gross commission received over the period in question.

Which forms should I use?

You can file your VDI tax return online, via your personal space. This solution is systematically offered if you have declared your income online in 2019 and 2020. It has been generalised for environmental reasons. The personal space can be accessed at any time, 24 hours a day, 7 days a week. This offers great flexibility to all taxpayers.

If you do not have an internet connection, you can still fill in a paper form. You can either download and print the 2042-C Pro form from the website impots.gouv.fr or service-public.fr, or go to your tax office to request a paper copy.

If you have any problems or questions, don't panic: you're not alone! As an Elora sales advisor, you can turn to more experienced sales advisors to ask your questions.

You also have another option: turn to an agent from the DGFiP (Direction générale des Finances publiques). They can help you in a number of ways:

• by telephone ;
• by e-mail (you can access this via your personal space on the impô websitets.gouv.fr);
• direct, via the NRP, the New Local Network;
• direct, via the France Services centres;
• in person, at one of the drop-in sessions organised at your local town hall.

Choose the solution that best suits your needs and where you live.

Good to know

Every year, the tax authorities announce deadlines for filing your tax return. These deadlines apply to traditional profiles such as people with VDI status. The dates depend on the département in which you live.

Which section should I fill in to declare my VDI income, depending on my status?

The headings to be completed when declaring your VDI income depend on several factors, such as the frequency with which the VDI activity is carried out and the status of the advisor.

Which section should I fill in as a VDI agent?

At Elora, the contract offered is that of VDI mandataire: you take orders on behalf of the company using the order forms made available to you. As a door-to-door salesperson, you receive commission based on your sales volume and the sales of your team members throughout the year.

With this status, your income falls into the BNC (Non-Commercial Profits) category. However, there are a few subtleties to be aware of in order to limit the risk of error when declaring your VDI income:

●Your activity as a self-employed door-to-door salesperson is regular. Go to the "Professional non-commercial income" section, box 5HQ (or 5IQ if this concerns the spouse), to enter the gross income linked to your VDI status.

●Your activity as a VDI is occasional. Go to box 5KU (or 5LU if this applies to the spouse), located in the "Non-professional non-business income" section.

Which section should I complete for VDI Buyer/Re-seller?

Buyer-resellers differ from agents in that they buy products from the company and then resell them to their customers. In practice, a salesperson who opts for this status will be able to define her own margins.

The income tax return for this type of VDI must be filed in the BIC (Industrial and Commercial Profits) category. In this case, box 5KO in the "Industrial and commercial income" section should be used to enter gross sales (without deducting the allowance). Commissions, also expressed in gross terms, should be entered in box 5KP.

Withholding tax: how does it work for VDIs?

Income earned as a VDIis not subject to income tax deduction at source. Why not? Quite simply because this income is not categorised as conventional wages and salaries.

However, VDIs are not exempt from all taxes and pay them regularly. Depending on their preferences, they may be deducted from the bank account linked to their structure:

• monthly ;
• quarterly.

What amounts do I have to declare depending on my status as a home seller?

The maximum amount that can be declared varies according to the status of the home seller.

Amounts to be declared for VDI agents

For commission sales agents, the total gross annual amount of commission on sales (and any promotions) over the previous two years must not exceed €72,600 excluding VAT. Please note, however, that this threshold changes regularly. It is important to consult the documentation made available by the tax authorities when you file your returns, so that you can keep abreast of the latest developments for professionals in your sector.

Amounts to be declared for VDI Buyers/Resellers

For the buyer-reseller category, the following rule applies: sales for the previous two years must not exceed €176,200 excluding VAT for the buyer-reseller activity. The animation activity must not exceed €72,600 excluding VAT.

What about VAT?

Some professionals may be exempt from VAT - this is known as basic VAT exemption. But here again, ceilings apply:

• 34,400 € commission for VDIs under the BNC scheme;
• 85,800 for buyer-resellers;
• 34,400 commission for VDIs in the BIC category.

In other cases, VDIs may be liable for VAT. VDIs are no longer eligible if the increased amounts are exceeded in the previous year or during the year. The increased ceilings are respectively :

• 36,500 in commission ;
• 94,300 for purchase-resale.

Good to know

You may be wondering what to expect if you forget to file your tax return as a VDI As in many cases, negligence can result in various penalties. These can take the form of :

• a fine ;
• surcharges applied by the tax authorities in the event of an audit;
• classification of the activity as 'concealed'.

So adopt the right reflexes and don't hesitate to ask a third party for help with your VDI income tax return.

> See also: VDI status in 30 questions