Recently, many Hanoi stores have refused cashless transactions, accepting only cash to evade taxes. This practice emerged after Decree 70 took effect, requiring businesses with annual revenue exceeding 1 billion VND in certain sectors (food and beverage, hospitality, retail, passenger transport, cosmetics, entertainment, etc.) to use electronic invoices generated by cash registers connected to the tax authorities.
According to Hanoi police, this practice is illegal and shows irresponsibility regarding public financial obligations.
The 2019 Law on Tax Administration stipulates that tax evasion can lead to administrative penalties or criminal prosecution. Authorities advise businesses to comply with regulations to avoid legal repercussions.
Police emphasize that declared revenue is not solely determined by cash received. Revenue is recognized and taxed when ownership and usage rights of goods are transferred to the buyer, regardless of payment method or timing.
Furthermore, altering transaction descriptions for cashless payments does not exempt businesses from tax obligations. Cash payments or misleading transaction descriptions cannot circumvent tax liabilities.
Hanoi police also remind individuals engaged in sales or services without business registration that they are still subject to taxation.
"Tax authorities and relevant agencies possess the expertise to verify and cross-reference information. Sellers unable to provide clear documentation for their income sources will face suspicion of tax evasion," police stated.
Authorities do not have direct access to individual bank accounts to determine revenue. However, they can request relevant information from e-commerce platforms, banks, and delivery services for audits, inspections, or enforcement actions against taxpayers.
Hanoi's tax authorities currently manage over 311,000 business households and individuals. Among these, 4,979 (1.6%) are subject to using electronic invoices from cash registers due to annual revenue exceeding 1 billion VND.
Previously, Ho Chi Minh City's tax authorities announced they were scrutinizing businesses accepting only cash payments for potential tax evasion.
Phuong Dung
