How is a VDI paid?

The rights and duties of the VDI

The VDI activity, being recognised by the State, grants the VDI the right to social protection. They are treated as employees under the Social Security system and are not affiliated to the RSI.

However, he is self-employed as far as the tax authorities are concerned, and is therefore considered as not being an employee as far as unemployment law is concerned. He does not contribute to his unemployment insurance and therefore cannot receive Pôle Emploi compensation. However, they are entitled to a pension based on their earnings.

Find out more about the status of independent home seller at the Public Service website.

VDI contract: which one to choose ?

The VDI is bound to the company that entrusts it with the sale of its products and services by a contract. There are two main types of contract: the VDI agent contract and the VDI buyer-reseller contract.

VDI agency contract

By choosing the agency contract, the VDI does not buy stock. The company grants the salesperson the right to take orders in its name and on its behalf. There is no stock to manage, so this is the least risky contract for the VDI.

The company sets the agent's remuneration. The salary received is in fact a commission defined by the company on the sales achieved by the VDI agent.

When declaring sales, theVDI agent must declare its commissions in the Non-Commercial Profits (NCP) category. To benefit from VAT exemption and the micro-business tax system, if you are a VDI agent, you must declare a gross annual amount of less than €33,200.

Find out more about our special VDI agent article

VDI buyer-seller contract

The VDI buyer-seller, on the other hand, buys the stock and then resells it. They are free to set their own prices, subject to the maximum recommended price. This type of VDI contract involves more risk, but the initial financial investment can nevertheless result in a more attractive margin.

The margin that the salesperson earns represents his or her salary. Annual sales must be less than €82,800 and sales promotion commission less than €33,200. Margins must be declared as Industrial and Commercial Profits (BIC), while sales promotion commissions must be declared as Non-Commercial Profits (BNC).

The advantages of VDI status

There are a number of advantages to becoming an independent home seller:

- The VDI business adapts to the VDI's life: they can organise themselves as they wish.

- They become their own boss: there are no imposed working methods or timetables. VDIs are free to manage their own business and financial objectives, without any directives from the company.

- Remuneration based on motivation: the sales generated depend on the commitment of the VDI. The more committed they are, the more they earn.

- No qualifications or experience required: anyone can do it becoming a VDI and succeed by giving ourselves the means to do so !

VDI remuneration

• VDI income

Self-employed home sellers are not paid a fixed monthly salary. The income of self-employed home sellers depends on their sales figures and their status.

What is the status of a home seller?

- The sales representative receives a commission based on pre-tax sales of products or services. The company sets the commission rate (generally between 20% and 35%).

- VDI buyer-resellers set their own product prices. The margin they make on their sales determines their remuneration.

In addition to sales commission, some companies offer their sales staff a commission for sales promotion. For example, VDIs who want to get involved in recruiting, training and managing a sales team receive a management commission for sales made by the salespeople in their team.

• Sales targets and remuneration for a VDI

Unlike a VRP (Vendeur, Représentant et Placier), who is an employee of the company, a VDI has no sales targets, i.e. no minimum sales quotas. However, the remuneration of a VDI is proportional to the number of sales made.

The company can also set up sales challenges or milestones to be reached. These actions, aimed at increasing sales, give VDIs the opportunity to increase their income and receive gifts.

• Managing a VDI's expenses

The costs of a self-employed home seller can be considerable. This is especially true for home agents with buyer-seller status, who have to build up a stock of products to sell.

Purchase of products, travel costs. Who incurs the costs of a door-to-door sale ? No. It is the seller himself who advances the costs necessary to carry out his business.

It should be noted, however, that a tax allowance of 34% may be granted for business expenses in the case of an agent-seller contract, and 71% in the case of a buyer-seller contract.

• The obligations of VDIs in relation to their remuneration

Declaration of activity, taxation, VAT, the income of a self-employed home seller can give rise to various operations: what are the obligations for VDIs? ?

o VDI tax return

Income earned as a self-employed home seller must be declared annually.

Whether it is your main or secondary activity, the income generated by your VDI activity must be reported to the tax authorities as :

- Non-commercial profits (BNC), if you are an authorised seller

- Industrial or commercial profits (BIC), if you are a buyer-reseller

o Declaration of VDI activity

Above a certain turnover threshold, self-employed home sellers are required to register with the relevant professional register:

- The RSCA (special register of commercial agents): as part of a contract as a sales agent

- The RCS (Trade and Companies Register): for sellers with buyer-reseller status

The 2 conditions that make registration compulsory for VDIs are :

- Working as a VDI for 3 consecutive calendar years (even intermittently)

- Gross annual remuneration in excess of €21,996 for each of these years

Once a VDI is registered with the RSCA or RCS, it is no longer covered by the Social Security system but by the general system for non-salaried workers (TNS).

o VAT exemption

Like micro-businesses, self-employed home sellers can be exempt from VAT, provided they do not exceed a certain turnover threshold:

- 36,800 for an agent

- 91,900 for a buyer-reseller

Documents (such as invoices, etc.) must then be marked "VAT not applicable, article 293 B of the General Tax Code".

Would you like to start selling from home? Find out who can become a home seller.[IB12]