On June 4, 2025, the Regional Tax Department sent an open letter to households and individuals engaged in business activities in Hanoi and Hoa Binh regarding the situation of some businesses only accepting cash payments to evade taxes.
In recent days, social media has been abuzz with information about stores refusing to accept transfers and only accepting cash payments to “evade taxes”- as stated in the open letter.
The Tax Authority would like to inform taxpayers as follows: According to tax law, value-added tax revenue for households and individuals is the revenue including tax (in case of taxable subjects) of the total sales of goods and services that households and individuals are entitled to, regardless of whether the money has been collected or not.
The act of displaying a “cash-only” sign or using vague transaction descriptions such as “repaying borrowed money”, “coffee money”, or “shipping fee” to make it difficult for authorities to determine revenue and reduce tax liability may instead be seen as a sign of suspected revenue concealment. It also goes against the trend of a “Digital Society, Digital Economy, and Digital Citizens” and the Party and State’s policy to promote cashless payments.
In some cases, sellers requesting additional charges from buyers for choosing a transfer payment method not only affects the rights of buyers but also indicates a violation of the law.
The Tax Authority encourages households and individuals to be prudent in their business practices, understand legal regulations, and refrain from engaging in illegal activities such as revenue concealment and a lack of transparency in economic transactions. They should also accurately and fully declare their revenue when selling goods and services.
The Tax Authority is ready to support and encourage households and individuals to transform and develop into enterprises to enjoy investment and business incentives and tax preferences according to Resolution No. 198/2025/QH15 dated May 17, 2025, on mechanisms and policies to encourage the development of the private economy.
For taxpayers who intentionally conceal revenue, make untruthful tax declarations, or fail to meet requirements, there will be consequences such as tax arrears collection, tax finalization, penalties for false declarations, tax evasion, or even criminal liability.
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