Cashless payment methods and tax evasion: Evident in 28 countries in Europe and Vietnam - Looking at Vietnam Economic Policies Dealing with Cashless Payment Methods

A cashless society has numerous advantages such as lower financial transaction costs and fewer tax evasion concerns. Cashless payment methods can mitigate tax evasion because they leave a trail of records of the transactions. Using panel data from 29 countries from 2000 to 2021, this study investigated the connection between different cashless payment methods and tax compliance, analyzed the connection between each cashless payment method in the context of the value-added tax, and synthesized the effect of different variables affecting tax evasion. Furthermore, this study also looked into Vietnam’s current practices and implementations of policies governing cashless payment methods as well as its desire to transition into an e-Government; this study looks at the current realities of Vietnam’s efforts into this endeavor and provides recommendations and directions for the implementation of the cashless payment system as well as the transition into an e-Government.