How long must VAT records be kept?
HOW LONG MUST VAT RECORDS BE KEPT?
How long must VAT records be kept in the UAE? Learn the 5-year and 15-year rules, what records are included, and how to stay FTA compliant. TAXESMAN explains.
How Long Must VAT Records Be Kept?
How long must VAT records be kept in the UAE?
This is a crucial question for any VAT-registered business, especially if you are preparing for an FTA review or organising your records properly.
Many businesses in Dubai, Abu Dhabi, Sharjah, and UAE free zones file VAT returns correctly but fail on record retention. Unfortunately, missing or deleted records can still lead to penalties, even years later.
In this article, you will learn how long VAT records must be kept, which records are covered, and practical tips to stay compliant without stress.
If you want VAT records that are always audit-ready, TAXESMAN is here to help.
How Long Must VAT Records Be Kept According to UAE VAT Law?
The general rule
For most businesses, VAT records must be kept for at least 5 years from the end of the tax period to which they relate.
This rule applies whether your business is:
- Mainland or free zone
- Small or large
- Actively trading or dormant
If the FTA asks for records during this period, you must be able to provide them.
Need help setting up a proper VAT record retention system? Contact TAXESMAN today.
How Long Must VAT Records Be Kept for Real Estate Activities?
A longer retention period
If your business deals with real estate, the rule is different.
VAT records related to real estate must be kept for 15 years.
This includes:
- Sale and purchase records
- Leasing documents
- VAT invoices related to property
- Adjustments linked to real estate transactions
Real estate VAT audits often look far back, so long-term record storage is essential.
If you are in real estate or property management, TAXESMAN can help you organise records correctly.
What VAT Records Must Be Kept During the Retention Period?
When asking how long must VAT records be kept, it is equally important to know what must be kept.
VAT records include:
- Tax invoices issued
- Tax invoices received
- Credit notes and debit notes
- VAT returns (VAT201)
- VAT payment confirmations
- Accounting records supporting VAT calculations
- Import and customs documents, where applicable
All these records must be retained for the full retention period.
If your records are scattered or incomplete, TAXESMAN can help clean them up.
Can VAT Records Be Kept Electronically?
Digital records are allowed
Yes. VAT records can be kept electronically, as long as they are:
- Readable
- Accessible
- Secure
- Available to the FTA upon request
Many businesses in the UAE use cloud accounting systems or digital document storage.
However, poor file naming or missing backups can still cause problems.
If you want a clean digital VAT record system, contact TAXESMAN today.
How Long Must VAT Records Be Kept for Freelancers and SMEs?
A common misconception is that freelancers or small businesses have lighter rules.
They do not.
Freelancers, consultants, and SMEs must follow the same VAT record retention rules:
- 5 years for general VAT records
- 15 years for real estate-related VAT records
If you are a freelancer growing your business, TAXESMAN can help you stay compliant from day one.
Real Examples: How Long Must VAT Records Be Kept in Practice?
Dubai example: Consulting SME
A consulting company in Dubai must keep VAT invoices, VAT returns, and accounting records for at least 5 years, even if the business later closes.
Abu Dhabi example: Trading company
A trading company in Abu Dhabi that imports goods must keep customs documents, supplier invoices, and VAT calculations for 5 years.
Proper VAT documentation is essential for importers.
Free zone example: Real estate holding company
A free zone company holding property must keep VAT records for 15 years.
Deleting files too early can create serious issues later.
TAXESMAN can help set up long-term compliance storage.
What Happens If VAT Records Are Not Kept Long Enough?
If you cannot provide VAT records during an FTA request:
- Input VAT claims may be rejected
- VAT assessments may be raised
- Administrative penalties may apply
Even if the VAT return was filed years ago, missing records can still cause problems.
If you want peace of mind, let TAXESMAN manage your VAT records properly.
Conclusion: How Long Must VAT Records Be Kept?
To recap, how long must VAT records be kept in the UAE?
- 5 years for most VAT records
- 15 years for VAT records related to real estate
- Records must be accessible, readable, and available to the FTA
VAT compliance does not end with filing returns. Proper record retention is just as important.
Don’t take chances with VAT audits. Let TAXESMAN handle your VAT bookkeeping, records, and compliance end to end.
FAQs: How Long Must VAT Records Be Kept?
How long must VAT records be kept in the UAE?
At least 5 years, and 15 years for real estate-related VAT records.
Does this apply to free zone companies?
Yes. VAT record retention rules apply equally to free zone and mainland businesses.
Can VAT records be stored digitally?
Yes, as long as they are accessible and secure.
What happens if I lose old VAT records?
You may face issues during an FTA audit, including penalties or rejected VAT claims.
Who can help me manage VAT records properly?
TAXESMAN can manage VAT record keeping, bookkeeping, and FTA compliance.