The tax authorities are committed to supporting households in conveniently using electronic invoices. Individuals and businesses are advised not to conceal revenue and to declare and pay taxes fully to avoid penalties.
Businesses with annual revenue exceeding 1 billion VND have been using electronic invoices from point-of-sale systems connected to the tax authorities for 5 days. Some businesses are still facing difficulties and obstacles in the initial stages of implementation. Furthermore, as we have reported, a small number of businesses have refused to accept payments via bank transfer or used accounts not registered in their name to evade taxes.
So, can avoiding bank transfers help you avoid taxes? The Tax Department recently held an online conference with 350 locations nationwide to answer questions from business owners.
From June 1st, businesses will use electronic invoices. Every sales and purchase transaction will be transparent. Many businesses are concerned that if their revenue increases dramatically, will the tax authorities collect back taxes from previous months?
Ms. Nguyen Thi Cuc, President of the Vietnam Tax Consulting Association, said: "In the last six months, the amount was only 500 million VND, but from June 1st onwards, the invoices issued sometimes reached 300 million or 400 million VND per month. They want to ask, if we comply with issuing all invoices, will the tax authorities come back and collect back taxes on the invoices we issued in the first five months of the year?"
A representative from the Tax Department stated that they will not be collecting back taxes for previous months. Mr. Mai Son, Deputy Director of the Tax Department, Ministry of Finance, said: “If the invoice still reflects the current revenue, which is equivalent to the estimated revenue, then nothing will change. Only when revenue skyrockets by more than 50% compared to the current level will the tax authorities make adjustments.”
Regarding the recent situation where some businesses are refusing to accept bank transfers in order to "evade taxes," a representative from the Tax Department stated that this is only a case affecting a few businesses and is not widespread. The tax authorities have sufficient capacity to monitor and manage the revenue of each business.
Mr. Mai Son, Deputy Director of the Tax Department, Ministry of Finance, stated: “In the case of cash collection, we verify through the shipping code and transportation. Collecting cash and handling the transportation ourselves is very difficult; it requires intermediaries. Therefore, we still have information to identify these transactions regularly and continuously throughout the day. Even if other accounts are used, we have the procedures to share the database, ensuring it is solely for tax management purposes.”
The Tax Department advises individual businesses not to conceal revenue and to declare and pay taxes fully to avoid penalties, or even prosecution, for tax evasion. The Tax Department is committed to going to each business household to provide hands-on guidance and support in using electronic invoices conveniently.
The Ministry of Finance has directed its specialized units to review and finalize policies on financial support for business households renting or purchasing accounting software and shared digital platforms, aiming to reduce costs, promote digital transformation, and enhance transparency in management.