Cash Or Bank Transfer: Issuing Invoices Is Mandatory Under 2025 Regulations

All Payments, Whether By Cash Or Bank Transfer, Must Be Invoiced

Faced with the reality of many stores and household businesses refusing bank transfers to evade taxes, experts and authorities have issued a warning. This behavior is not only illegal but can also lead to administrative fines and even criminal charges.

Tax Evasion With Cash: Why It’s No Longer A Safe Escape?

Many believe that conducting transactions solely in cash is a way to “bend the law,” but this is a misconception.

According to Mr. Nguyen Van Thuc, Chairman of the Board of Members of BCTC Tax Agent LLC, refusing bank transfer payments reflects a dangerous habit: not issuing invoices for sales to dodge taxes.

Mr. Thuc emphasized that tax authorities are now equipped with comprehensive databases and modern technology to analyze and monitor actual revenue, including cash transactions. Therefore, any act of tax evasion is highly likely to be detected and strictly handled.

“Business households need to change their mindset. Selling goods must always be linked to issuing invoices and making full declarations. This not only helps avoid risks but also serves as a basis for protecting the rights of the business owners themselves,” shared Mr. Nguyen Van Thuc.

Risk Mitigation Solutions for Sellers

For safe and transparent business operations, experts offer two crucial pieces of advice:

1. Clearly list selling prices: The published price must be the final price, inclusive of Value-Added Tax (VAT).
2. Inform customers clearly: Affirm that regardless of whether the customer takes the invoice, the store is still required to issue an invoice and declare taxes according to regulations.

Practical Example: A glass of iced coffee is listed at VND 21,600. This price includes:

• Base price: VND 20,000
• VAT (8%): VND 1,600

Charging the customer VND 20,000 and not issuing an invoice is an unlawful act that exposes the business to legal risks.

The Unbreakable Rule: All Payments Require An Invoice

Mr. Nguyen Tien Dung, Deputy Head of the Tax Department of Region II, stated that while the reasons may be a lack of understanding of the policy or hesitation about procedures, business households must understand that:

Regardless of the payment method, cash or bank transfer, issuing an invoice and fulfilling tax obligations is mandatory.

Tax authorities are using modern tools for monitoring and post-audits. Any case of tax evasion, upon discovery, will be severely punished according to the nature and extent of the violation, ranging from administrative fines to criminal prosecution.

Decree 70/2025/ND-CP: A Clampdown On Smuggled Goods, Counterfeits, And Tax Fraud

Decree 70/2025/ND-CP, effective from June 1, 2025, has clearly stipulated regulations on invoices and documents, especially the application of e-invoices from cash registers. This has led some businesses to respond by temporarily closing down.

According to tax expert Nguyen Van Thuc, this temporary suspension of business often stems from two main reasons:

1. Dealing in goods of unknown origin: These include smuggled, counterfeit, and low-quality products. Ceasing operations is inevitable when they cannot prove the origin of their goods. Authorities need to handle this group strictly to protect a healthy business environment.
2. Not being ready for invoices and documents: Many legitimate business households are not yet accustomed to the process and do not store input invoices, leading to confusion during tax declaration.

The Way Forward for Legitimate Businesses

For those struggling with the transition, authorities need to provide timely support:

• Assist with inventory statistics: Allow for the honest declaration of existing inventory that lacks invoices to create transparency and a legal basis.
• Provide procedural guidance: Offer step-by-step instructions on tax declaration and emphasize the importance of requesting input invoices.

Creating favorable conditions for business households to comply with the law proactively will help them develop sustainably, while also enabling tax authorities to manage more effectively, contributing to a fair and transparent business environment.