Vietnam’s General Department of Taxation has proposed a policy requiring all gold transactions to be conducted via non-cash payment methods, such as bank transfers. This initiative aims to improve tax compliance and reduce financial misconduct in the gold trading sector. While the proposal is seen as a step forward greater transparency, experts express concerns about its feasibility, especially for small-scale buyers and sellers in rural areas.
In a effort to well managed tax compliance and curb illicit financial activities, Vietnam’s General Department of Taxation has recommended that the State Bank of Vietnam implement a regulation madating non-cash payments fot all gold transations. This measure is intented to enhance transapancy and facilitate better monitoring of the gold trading market.
The tax authority reports that since the nationwide rollout of electronic invoicing since July 1, 2022, over 53,000 businesses have adopted e-invoices generated from PoS system, including approximately 5,900 gold trading establishment. These businesses have collectively issued more than 1 million electronic invoices, indicating a significant shift toward digital transaction records.
To further strengthen oversight, the General Department of Taxation has also suggested that local governments intensify inspections and enforce penalties on gold businesses that fail to issue e-invoices. additonally, the proposal includes the development of mechanisms to monitor and control non-cash gold transactions effectively.
However, the proposal has sparkled debate among industry experts and stakeholders. Critics argue that enforcing non-cash payments for all gold transations may be impractical, particularly for small-scale purchases in rural areas where access to banking services is limited. They suggest that a more feasible approach would be to apply non-cash payment requirement to transactions exceeding a certain value of threhold, such as 5,000 USD (100 million VND), to accommodate the diverse capabilities of consumers across the country.
As the government considers this proposal, it faces the challenge of balancing the goals of increased financial transparency and tax compliance with the practical implementation across Vietnam’s varied economic landscape.