Choice of home seller status

You have chosen to distribute your products or services by using a network of independent sellers at home (Article L. 135-1 of the Commercial Code).

You determined whether this home seller would be:

• Buyer and reseller of your products;

• Intermediary (see our services to help you choose the most suitable intermediary contract).

You must ensure the attractiveness of your business model to maximize the sustainability of the relationship with your home sellers.

You wonder about their tax and social status, which will directly determine their net income, which is the key to this attractiveness.

This involves following analysis steps that will allow us to define which tax and social security regime is applicable.

We must first ensure that your business meets the definition of home selling. Canvassing at home:

• consists of offering a customer products or services in a place that is not usually intended for commerce: home or workplace in particular;
• puts the seller and customer in physical contact.

2.We must then analyze your contracts and processes to ensure that your home seller is independent, the tax and social status of the seller resulting from this independence.

We therefore verify the absence of a relationship of subordination and criteria for reclassification of his distribution contract as an employment contract.

3.Third, we look at whether the independent home seller has a contract with you:

• VDI proxy,
• Buyer-dealer VDI.

4.In a fourth step, we develop a guide for your independent home sellers so that they know:

The income of the home seller has a different nature depending on the VDI contract selected:

• the VDI agent takes orders in the name and on behalf of your company, which remains the owner of its stocks, and receives commissions on the turnover it brings,
• the buyer-reseller VDI, as its name suggests, buys a stock of product from your company and resells it to its customers: it sets the selling price itself (within the possible limit of a maximum recommended selling price) and makes a margin
• how to declare their activity to register, which will allow you to benefit from a presumption of non-salaried employment, and which will allow them to be known by the tax services and the social funds as self-employed, then that they know how to declare their income;
• what their tax and social security system will be;
• what the reporting obligations will be.