Cash payments cannot be used to evade taxes, tax authority warns

Cashless payments are expanding, supporting greater management and transparency in the digital economy. From January 1, 2026, Vietnam will abolish the cash-based tax collection mechanism and move to a declaration-based approach for households and individuals conducting business. However, tax authorities warn that some business premises may try to “evade” by favoring or only accepting cash payments, a practice that carries significant legal risk.

Tax authorities warn against cash-only transactions

The Ministry of Finance says that, overall, the business community, households, individual taxpayers, and the public comply with tax regulations, invoicing, documentation, and e-filing. It also notes that e-filing, electronic invoicing, and cashless payment solutions are widely available.

Despite this, tax authorities have received reports that some households and individuals selling goods or providing services require customers to pay in cash, restrict or reject transfers and electronic payments. Authorities say this may be an attempt to conceal revenue and avoid issuing invoices or declaring taxes as required by law.

Digital data trails can still identify undeclared revenue

Lawyer Nguyen Van Duc, General Director of Trong Tin Tax Advisory Services, said that even if a business uses cash, authorities can still trace and cross-check information using digitized, interconnected data. He pointed to data generated through electronic identification, bank accounts, and electronic tax applications, which can help authorities determine tax obligations.

The Hanoi Tax Department added that transfers without specific content cannot escape scrutiny, as tax offices hold comprehensive information on sellers and funds. It said it will rely on banking data, e-commerce platforms, shipping providers, and the electronic invoicing system to identify actual revenue. If organized tax evasion is found, cases will be referred to police for potential criminal prosecution under applicable law.

Cashless payments continue to grow

NHNN data show that in the first two months of 2026 compared with the same period in 2025, cashless payment transactions increased 40.74% in volume and 13.41% in value. Online channel transactions rose 73.09% in volume and 28.11% in value, while mobile channel transactions increased 34.37% in volume and 10.51% in value. QR code transactions grew 20.22% in volume and 12.59% in value.

Within interbank systems, the Interbank Electronic Payment System increased 9.5% in volume and 69.07% in value. The Electronic Funds Transfer and Settlement System rose 43.74% in volume and 11.66% in value.

ATM and POS trends

By the end of February 2026, the market had 20,772 ATMs (down 2.68%) and 761,793 POS terminals (up 1.36% versus 2025). In the two months ending February 2026 versus the same period in 2025, ATM transactions declined 6.40% in volume but rose 3.03% in value, reflecting a continued shift away from cash toward cashless methods.

New rules tighten bank account traceability

Under Circular 30/2025 of NHNN (amending certain provisions of Circular 15/2024), from April 1, all bank account names must match the information on the citizen ID or identity card. Banks will stop allowing customers to use nicknames for account holders.

The measure is intended to tighten control, increase transparency, and improve traceability of transactions, particularly as financial fraud becomes more sophisticated.

Source: Quỳnh Trang, Thời báo ngân hàng, 04/03/2026.