Challenging a tax penalty decision in Vietnam: process, deadlines, and practical lessons

The short answer

A business that disagrees with a tax penalty or tax collection decision has two routes: an administrative complaint or an administrative lawsuit in court.

The complaint deadline is 90 days from the date the decision is received or becomes known.

Handling deadlines under the Law on Complaints (as amended by Law No. 136/2025/QH15, effective 1 July 2026):

• acceptance is shortened to 7 days;

• first-instance resolution takes no more than 30 days, or 45 days for complex cases;

• second-instance resolution takes no more than 45 days, or 60 days for complex cases.

Remember that a complaint does not suspend enforcement of the decision. The business should plan to pay while awaiting the outcome, to avoid late-payment interest and enforcement risk.

What can be challenged: minutes, conclusions and decisions

A common mistake is to complain about the "audit minutes" or "audit conclusion". The object of a complaint is an administrative decision, specifically:

• decisions imposing administrative penalties for tax or invoice violations;

• deemed tax assessment decisions and tax collection decisions;

• decisions refusing or clawing back VAT refunds;

• decisions enforcing tax administrative decisions.

At the minutes stage, the business protects itself by giving explanations and recording its disagreement. Those records become key evidence in any later complaint.

The complaint process step by step

Stage	Timeframe	Practical notes
First complaint filed	Within 90 days of receiving or learning of the decision	Addressed to the person who issued the decision. Must be signed and accompanied by supporting documents
Acceptance	7 days from receipt (from 1 July 2026)	If not accepted, the authority must give reasons in writing
First-instance resolution	Up to 30 days, or 45 days for complex cases, from acceptance	Request a dialogue where verification results differ from the business's position
Second complaint	Within 30 days of receiving the first-instance decision, or of the deadline passing without a decision	Addressed to the head of the directly superior tax authority
Second-instance resolution	Up to 45 days, or 60 days for complex cases, from acceptance	A dialogue is mandatory at this stage
Administrative lawsuit	One year from receiving or learning of the decision	May be filed directly or after an unsuccessful complaint

New from 1 July 2026: suspension of complaint handling. Law No. 136/2025/QH15 adds Article 11a on suspending and terminating complaint handling. The suspension period does not count towards the resolution deadline. Once the grounds for suspension cease, the handler must issue a decision to resume. The business is entitled to receive these decisions and should monitor them closely so the case does not stall.

Complaint or lawsuit?

Criterion	Administrative complaint	Court proceedings
Time	Faster, with clear statutory deadlines	Usually longer
Cost	Low	Higher: court fees, legal costs, expert fees where needed
Independence	The tax authority reviews its own or a subordinate's decision	The court is an independent third party
Best suited to	Clear numerical errors, wrong penalty level, overlooked mitigating factors	Disputes over interpretation and application of law, large amounts, need for an independent ruling
Relationship with the tax authority	Less adversarial, easier to engage in dialogue	Long-term relationship impact should be considered

In practice, many cases are resolved well at the first complaint stage when the file is well prepared. Litigation should be prepared as a fallback, with the limitation period tracked in parallel from the outset.

The five most effective grounds for complaint

1. Errors in figures: the tax amount, number of non-compliant invoices or tax period has been wrongly determined.

2. Wrong characterisation of the conduct: an incorrect declaration (penalty of 20% of the tax shortfall) treated as tax evasion (penalty of one to three times the tax evaded). The difference in amount is very large.

3. Mitigating factors overlooked, or aggravating factors applied without basis.

4. Expired limitation periods for penalties or tax collection.

5. Wrong law applied over time: a violation that occurred before a new rule took effect but was penalised under the new, harsher rule. An example is invoice violations before 16 January 2026 penalised under Decree No. 310/2025/ND-CP, whereas new rules apply retroactively only where they favour the violator.

Illustrative case

Company I was penalised for tax evasion with a fine equal to one times the tax amount, i.e. VND 1 billion. The reason was that it had used invoices from a supplier that the tax authority later found to be unlawful.

Company I complained, with the following evidence:

• purchase contracts;

• delivery records;

• bank payment records;

• complete accounting entries;

• lookups showing that the supplier was operating normally at the time of the transactions.

The company relied on the provision of Decree No. 125/2020/ND-CP covering cases where the buyer proves that the violation was the seller's fault and has fully recorded the transactions in its accounts. In such cases, the conduct is treated as an incorrect declaration, not tax evasion.

As a result, the decision was amended to a penalty of 20% of the tax, i.e. VND 200 million. The business saved VND 800 million in penalties. More importantly, it avoided a record of tax evasion, which could have affected its reputation and future legal exposure.

Practical tips for drafting a complaint

• State the number and date of the contested decision and who issued it.

• Complain item by item: separate each collection or penalty item the business disputes. Do not contest the entire decision in general terms.

• Tie each argument to a basis: a specific legal provision and the corresponding evidence.

• Make a specific request: annulment, partial amendment, or a change in the form or level of the penalty.

• Request a dialogue, and ask for enforcement to be suspended where enforcement could cause irreparable harm.

• Keep proof of filing and track the acceptance and resolution deadlines.

FAQs

What is the deadline for complaining about a tax penalty decision?

90 days from receiving or learning of the decision.

Must the penalty be paid while the complaint is pending?

Yes. A complaint does not suspend enforcement unless the competent person decides to suspend it. If the complaint succeeds, any overpayment is refunded or offset as provided by law.

Can a business go straight to court without complaining first?

Yes. An administrative lawsuit may be filed directly within one year of receiving or learning of the decision.

What changed from 1 July 2026?

Acceptance is cut to 7 days. The law adds rules on suspending and terminating complaint handling. Jurisdiction has been adjusted to the two-tier local government model.

Legal basis

• Law on Complaints 2011, as amended by Law No. 136/2025/QH15, and Decree No. 124/2020/ND-CP as amended by Decree No. 155/2026/ND-CP.

• Law on Tax Administration No. 108/2025/QH15.

• Decree No. 125/2020/ND-CP, as amended by Decree No. 310/2025/ND-CP.

• Law on Administrative Procedure 2015.

How W&A can help

The outcome of a complaint depends on sound legal reasoning, complete evidence and a firm grasp of the deadlines. W&A provides comprehensive tax attorney services:

• Review of penalty and collection decisions: identifying grounds for complaint and prospects of success, and estimating the amounts that may be adjusted.

• Drafting complaints and evidence files, and tracking all acceptance and resolution deadlines.

• Representation in dialogues with the tax authority at both complaint stages.

• Administrative tax litigation before the courts.

• Advice on complying with decisions while a complaint is pending, to limit late-payment interest and enforcement risk.