How long are records related to VAT typically retained by businesses?

Businesses are generally required to retain records related to VAT for six years. This retention period is in alignment with the guidelines set forth by the tax authorities, which mandate maintaining accurate and comprehensive records to support VAT returns, claims for repayment, and other documentary evidence of transactions.

Keeping records for six years allows tax authorities to review documentation in case of audits or inquiries. This duration serves as a balance between ensuring compliance and allowing businesses to manage their documentation efficiently, without requiring excessive archival efforts.

While shorter periods such as three or five years may suffice for other record types, VAT-specific regulations typically necessitate the longer six-year timeframe for comprehensive accountability. Ten years, on the other hand, is generally excessive for VAT records unless otherwise specified by particular legal requirements or in specific sectors that require enhanced scrutiny.