VDI status and government bodies

What is VDI - Vendeur à Domicile Indépendant - status?

As the name suggests, a VDI is aself-employed salesperson. They are not company employees, but individual entrepreneurs who distribute the products or services of a company (in this case Elora) with which they have signed a written distribution contract. VDIs have had their own status since 1993. The VDI status was designed to impose as few administrative formalities and constraints as possible.

There are 3 possible social statuses for home-based salespeople:

• The self-employed worker, registered with the Trade and Companies Register (RCS) or the Special Register of Commercial Agents (RSAC), comes under the scheme for self-employed workers (TNS), which depends on the RSI (Social Scheme for the Self-Employed).
• Self-employed workers who are not registered with the RCS or RSAC, and are therefore treated as employees for social security purposes, come under the general social security scheme (VDI status).
• An employee of a company, bound to his employer by a contract of employment, comes under the general Social Security scheme (VRP).

Elora sales advisors generally fall into the second category .

How do I qualify as an independent home seller?

All you have to dois complete a declaration of commencement of activity with the CFE (Centre de Formalités des Entreprises) of the URSSAF by post or online*.This declaration is compulsory (within 15 days of your first sale) for both VDI agents and VDI buyers/resellers. This declaration allows you to be identified for tax purposes and will give you a SIRET number and an APE code (47.99A vente à domicile).

*Tip for navigating theCFE section of the Urssaf website : go to the left and click on the "Declare a formality" button. Select "artists, authors, taxi-renters, home-based salespeople" and then "starting a business, creating a business" before filling in the personal fields. Please note: make sure you fill in the relevant tax option.

Is VDI status recognised by the government?

The answer is yes, and it is covered by the general social security scheme.

The independent home seller and tax: how does it work?

Now we come to the "unpleasant" part. The VDI status is no exception to the rule, and every independent home seller must declare his income at the end of his first year of activity (2042C - PRO)

• For VDI agents:commissions must be declared in the Non-Commercial Profits (BNC ) category.
• For VDI buyers/retailers: the profit margin must be declared in the Industrial and Commercial Profits (BIC ) categoryand the sales promotion commissions in theNon-Commercial Profits (BNC) category .

VDI status and VAT: what are the differences?

VDIs registered under the micro-enterprise scheme are exempt from VAT. However, self-employed home workers must ensure that they do not exceed the following thresholds:

• VDI agent : annual gross commission must be less than €32,900 (2015 threshold),
• VDI acheteur-revendeur: annual turnover for the sales activity must be less than €82,200 and, without exceeding this overall threshold, sales commissions must be less than €32,100 €32,900 (2015 threshold).

VDI status and unemployment

Good news! There is a system for returning to work without loss of income. But every situation is different. In each specific case, you should contact your local Pôle emploi office, because VDI status is no exception to the rule: like any self-employed status, VDIs do not pay unemployment contributions.

Is it possible to combine VDI status with a full-time job?

That's the second piece of good news! As self-employed home sellers are not considered to be employees, their activity can be used to supplement their income. However, some professions, such as full-time civil servant, ministerial officer or lawyer, do not allow VDI activity.

Don't panic, if you have any other questions, take a look at our VDI Guide or our FAQ for freelance sellers!