Are many small business owners avoiding bank transfers?
Concerned that the new tax policy, effective from June 1, 2025, will tighten control over household businesses, many small traders are "avoiding" taxes by preferring to receive cash payments.
Observations in many business areas across Nghe An province show that the fear of being taxed when making bank transfers still causes many small business owners to avoid this payment method, continuing to prefer using cash in transactions.
At a restaurant in Quang Trung ward, Vinh City, reporters observed a large number of customers at lunchtime. Although a QR code for electronic payment was displayed at the cashier counter, the staff still subtly reminded customers that they were currently prioritizing cash payments. Many customers still made bank transfers when they didn't have enough cash, but the majority opted for cash payment as requested by the owner.
Ms. Nguyen Thi Lua, residing in Quang Trung ward, Vinh City, shared: "I go to the market regularly and have noticed that for the past few days, vendors have been repeatedly saying, 'Next time, remember to bring cash, ma'am.' Upon asking, I learned that they are gradually reducing bank transfers because they are afraid of having their revenue tracked."
At Vinh Market – one of the city's largest traditional markets – a similar situation is occurring. Most stalls do not display QR codes, and transactions are primarily conducted with cash. A fruit vendor shared: "Everyone around me accepts cash, so I followed suit. I still accept bank transfers, but most customers transfer money because they don't have cash."
Not only in Vinh City, but also in many other areas such as Phu Dien commercial center (Dien Thanh town, Dien Chau district), Dien Thanh beach, Dien Ky commune... the situation of vendors reminding customers to pay with cash still exists. Some fashion stalls in Phu Dien, Dien Thanh town, even though they have QR codes at the cashier counter, still ask customers to pay with cash.
Besides those doing business directly at markets or stalls, even online sellers are finding ways to circumvent regulations. Some sellers require customers to transfer money to multiple different bank accounts, avoiding repetition of account holder names, or requesting that the transfer details not be specified. Even online delivery drivers in localities throughout Nghe An province are accepting cash. The purpose is to avoid being tracked for revenue, thereby reducing or not declaring actual income.
According to the Tax Department, business households need to define long-term goals, comply with legal regulations, and avoid facing legal risks..The implementation of electronic invoices will help tax authorities more closely monitor cash flow and actual revenue.
The Tax Department also stated that it will continue to strengthen coordination with banks, market management agencies, and law enforcement agencies to cross-reference payment data, electronic invoices, and information from e-commerce platforms in order to promptly detect cases with signs of tax fraud.
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In fact, many individuals and businesses need to adapt to changes in tax policies. With the increasing popularity of cashless payments, refusing bank transfers not only inconveniences customers but can also expose small businesses to legal risks later on.