For how many years should a business keep VAT records?

A business should keep VAT records for six years to comply with the regulations set forth by tax authorities. This duration is established to ensure that businesses maintain adequate documentation that can be referenced in case of audits or inquiries from tax authorities. Keeping records for this length of time allows for the verification of transactions relating to sales and purchases, and ensures that a business can substantiate its VAT claims and payments during that period.

The six-year retention period reflects the time frame that is standard for financial documentation under most tax laws, allowing sufficient time for assessment processes. While certain other types of records or documents might have different retention requirements, for VAT specifically, six years is the expectation to guard against potential discrepancies or disputes concerning VAT obligations.