According to experts, anyone engaged in sales and business must declare and pay taxes. Whether payments are received in cash, via bank transfer, or through any financial intermediary, small business owners remain fully responsible for declaring and fulfilling their tax obligations.

Avoidance tactics and price hikes in response

From June 1, under Decree 70, household businesses with an annual revenue of at least 1 billion VND (approx. USD 39,200) and paying presumptive tax must issue electronic invoices with tax codes generated from point-of-sale (POS) systems.

This means business owners must equip themselves with compatible devices and software and issue an invoice for each transaction. The tax authority will then be able to track actual revenues.

It is estimated that around 37,000 businesses and individuals currently paying presumptive tax will need to switch to this system.

In response, some businesses have begun refusing bank transfers and accepting only cash. Others continue to accept bank transfers but have raised prices, citing “compliance with new tax laws.”

Conversely, some vendors are attempting to circumvent the rules. Thu Hang, a resident of Hoang Mai District in Hanoi, shared that a rice seller she buys from online asked her to leave the transfer description blank or simply write “transfer” because “there's barely any profit in each bag of rice and now we’re taxed too.”

On social media, rumors are spreading that personal bank accounts with over 1 billion VND in incoming and outgoing transfers annually will face a 1.5% tax on the total. As a result, some sellers insist on cash-only payments, while others say they’ll issue an e-invoice and deduct 1.5% if the buyer chooses to pay via bank transfer.

Signs of legal violations

Speaking to VietNamNet, Nguyen Ngoc Tinh, Vice President of the Ho Chi Minh City Association of Tax Consultants and Agents, noted that many small businesses have misunderstood the law.

While tax rates vary by industry, the tax assessment method remains unchanged before and after June 1. The key difference is that revenue is now transparently recorded via electronic systems rather than manual estimates.

“If you run a business, you must declare and pay taxes and issue invoices. Whether payment is made in cash, via bank transfer, or through any financial platform, tax obligations remain,” Tinh affirmed.

Regarding the trick of blank or vague transfer descriptions (e.g., “transfer”), he stated this violates the spirit of Decree 123/2020/ND-CP and the regulations in Circular 32/2025/TT-BTC on invoices and documents.

Online sellers, including those on platforms like Facebook or Zalo, must issue detailed, clear invoices for each transaction.

“If invoices don’t comply with official formats and content, tax authorities can impose penalties. Any form of sales must involve proper revenue declarations to determine the tax base,” he added.

Tinh also recommended that, along with POS systems, tax authorities ensure fair oversight to prevent discrepancies where cash-only sellers underreport, while those using transfers pay full tax. Revenue reconciliation, transaction tracking, and declared sales should help uncover any attempts to evade taxes.

Nguyen Van Duoc, CEO of Trong Tin Tax Consulting Services Co., stated that rejecting bank transfers could be considered a legal violation. Authorities may target such sellers for audit and enforcement as a deterrent.

Regarding the rumor of a 1.5% tax on total bank transfers, Duoc clarified this is a misinterpretation.

“Value-added tax is indirect and paid by the consumer, while personal income tax is the responsibility of the business owner. VAT may be added to sale prices. Businesses may adjust prices to cover tax costs, but they must publicly list these prices and apply them equally to all customers, regardless of invoice issuance,” he said.

According to Duoc, the new rules on e-invoices and POS systems aim to enhance transparency and prevent revenue loss - not to raise taxes.

“Some small business owners resist due to misconceptions or fear of complex procedures. It’s essential to shift the mindset: tax compliance is mandatory, but it’s not overly complicated,” Duoc emphasized.

The Regional Tax Office I (covering Hanoi and Hoa Binh) warned that signs reading “cash only” or vague transfer descriptions like “loan payment,” “coffee,” or “shipping fee” hinder authorities from verifying actual revenue and may signal attempts to conceal income.

Such behavior contradicts Vietnam’s broader goals for a digital society and economy and the government’s push for cashless payments.

“In some cases, charging customers more for choosing to pay by transfer not only harms consumer rights but may also constitute a legal violation,” the Regional Tax Office I noted.

Nguyen Le