Keeping VAT and corporate tax records

Which records and for how long

For VAT, records include tax invoices and credit notes issued and received, import and export documents, accounting records and the working papers behind each return. The general retention period is five years, with a longer period for certain records connected with real estate.

For corporate tax, the period is seven years after the tax period, and it covers financial statements, ledgers, bank statements, contracts and documents used to support elections and transfer pricing. Because the two periods differ, a seven-year rule applied to every document is simpler and safe.

If a record covers more than one period, such as a multi-year contract, the retention clock runs from the end of the period to which the record relates, so keep it until the last period is covered.

Keeping contracts for as long as the related tax records protects your position if a question arises about why a payment was made.

Format, language and location

Electronic records are accepted when they are complete, accurate and can be produced on request. The authority generally expects records to be available in Arabic or English, so keep translated versions of important foreign-language agreements.

Keep records in the UAE or be sure they can be retrieved quickly from abroad. If your files are in a hosting account outside the country, document how to access them and who holds the credentials, since the authority will not wait for a locked account to be recovered.

Test access by asking someone outside the team to retrieve a specific invoice from three years ago using only the written instructions you provide.

Cloud storage is acceptable if you control access and can export everything. Check the provider's terms for data location and what happens if the subscription ends, and keep local copies of key records.

وللمستندات الموقعة إلكترونيًا احتفظ بسجل التوقيع نفسه، أي الوقت والجهاز وبيانات الموقّع، مع الملف النهائي، فالعقد الموقع إلكترونيًا يستمد قوته من سجل المراحل بقدر ما يستمدها من نصه.

A structure that works

Organise by company, then by year, then by type: sales invoices, supplier invoices, bank statements, payroll, contracts, tax filings. Use consistent file names with date and counterparty. A document that cannot be found in two minutes is, in practice, missing.

4invoices.net keeps your issued PDF invoices in an archive, and 4mycontracts.net keeps agreements with approval history. Use the same naming and period logic across both, so a reviewer can follow a sale from contract to invoice without help from the person who created them.

Agree with your accountant on a closing checklist at year-end that includes confirming that all documents for the year are in the archive.

When systems change, export the old data in a readable format before closing the old account, and keep the export with the archive. Many companies lose years of records when a subscription lapses.

Name folders consistently across years. A pattern such as company, year, month and document type means a new person can find an invoice without learning your private logic. Avoid personal names, dates in different formats and abbreviations that only one colleague understands.

Backups, access and personal data

Keep at least two copies in different places and test a restore once a year. Limit access by role: the accountant needs invoices, HR needs employee files, and the owner needs everything but does not need to edit.

Records contain personal data such as names, addresses and salary details, which the UAE data protection law protects. Do not keep more than you need after the retention period ends; delete in a controlled way and note the date.

Decide who may delete: a single named owner, and a written log of what was destroyed and when.

Encrypt backups that leave the office, and record who has the key.

Share the restore instructions with a second person, and write down where the backup credentials are kept.

What to do when the authority asks

A request normally names the period and the type of record. Reply within the stated time, send complete sets and keep a copy of what you sent. If you cannot find something, say so and explain what you did to look, rather than ignoring the request.

Run a mock request once a year: pick a random invoice, then find the contract, the delivery proof, the payment and the entry in the ledger. If the exercise takes an hour, your archive needs work before a real review arrives.

Remember that departing staff take knowledge with them, so write down where the archive is and how it is named.

Document the procedure itself. A one-page note explaining where records are, who has access, how long each type is kept and how to respond to a request becomes the starting point for any new accountant or manager.

Contracts, payroll and other records that support the tax file

Tax records are not only invoices. A reviewer who questions a deduction will ask for the contract that explains the cost, the delivery or timesheet that shows the work was done, and the bank payment that shows it was paid. The three documents together make the case; any one alone is weak.

Payroll records, including contracts, salary payments and leave, support the expense side, and fixed asset records support depreciation. Keep the purchase invoice and the date the asset entered service for each item of equipment.

For groups, keep intercompany agreements and the calculations behind recharges. A clear paper trail of agreements and payments is often the whole defence on transfer pricing questions.

Add the retention periods to your internal procedures, with the date the rule was last checked, because tax rules are amended and an outdated note is worse than none. A quarterly review of this one page is enough.

وفي كل يناير راجع الأرشيف: هل اكتملت مستندات السنة الماضية، وهل حان وقت إتلاف سجلات انتهت مدتها، وهل توجد نسخ احتياطية سليمة؟

Generally five years from the end of the tax period to which the records relate, with longer periods for certain real estate related records. The Federal Tax Authority can ask for them during that time. Check the current rule for your records with the authority, because exceptions exist. The retention period starts from the end of that period.

Seven years after the end of the tax period they relate to, as the corporate tax law provides. Records include financial statements, books of account, contracts and the supporting documents behind your return. Keep them in a form that you can produce quickly on request. Seven years is the rule to plan around. ولا تتعامل مع المدة كحد أدنى فقط.

Yes, electronic storage is accepted as long as the records are complete, readable and available when the authority asks. Keep a backup, protect access, and make sure you can reproduce original invoices and agreements. Ask your adviser if any document, such as a signed original, needs to be kept on paper. وأخبر مستشارك بنظام الحفظ الذي تستخدمه.

The authority generally expects records to be available in Arabic or English, and a translation may be requested for documents in other languages. Keep a translated copy of important foreign-language contracts alongside the original, particularly where they support a tax position. Keep them with the original. Ask the authority if unsure. وهذا أيسر عند أي مراجعة وأقل كلفة.

Information page

This page is informational. Confirm requirements with the competent UAE authority or your adviser; 4b2b tools cover general invoicing, communication and records only.