What records must I keep for VAT compliance?
WHAT RECORDS MUST I KEEP FOR VAT COMPLIANCE?
What records must I keep for VAT compliance in the UAE? Learn the exact VAT records required by the FTA and how long to keep them. TAXESMAN explains.
What Records Must I Keep for VAT Compliance?
What records must I keep for VAT compliance in the UAE?
This is one of the most important questions business owners ask after registering for VAT.
Keeping the wrong records, or not keeping them long enough, is one of the fastest ways to run into issues with the Federal Tax Authority (FTA), even if your VAT returns are filed on time.
In this article, you will learn exactly what records must be kept for VAT compliance, how long they must be retained, and practical examples for businesses in Dubai, Abu Dhabi, Sharjah, and free zones.
If you want your VAT records to be clean and audit-ready, TAXESMAN is here to help.
What Records Must I Keep for VAT Compliance According to the FTA?
The FTA requires VAT-registered businesses to keep specific records that support their VAT returns.
At a minimum, VAT compliance records must clearly show:
- What you sold
- What you bought
- How VAT was calculated
- How VAT was reported and paid
These records must be available if the FTA requests them.
Need help setting up a proper VAT record-keeping system? Contact TAXESMAN today.
Sales Records You Must Keep for VAT Compliance
VAT Records Related to Sales
If you are asking what records must I keep for VAT compliance, sales records are the first category.
You must keep:
- Tax invoices issued for taxable supplies
- Simplified tax invoices, where applicable
- Credit notes and debit notes
- Records of zero-rated and exempt supplies
- Daily sales summaries, if applicable
These records must match what you declare as output VAT in your VAT return.
If your invoicing system is not VAT-compliant, TAXESMAN can help fix it.
Purchase Records You Must Keep for VAT Compliance
VAT Records Related to Expenses
You must also keep detailed records of your purchases and expenses.
This includes:
- Tax invoices received from suppliers
- Import documentation, if applicable
- Records of input VAT claimed
- Credit notes received
Only valid tax invoices support input VAT recovery.
If you are unsure which invoices qualify, TAXESMAN can review them before filing.
Accounting Records Required for VAT Compliance
Beyond invoices, VAT compliance requires proper accounting records.
You must keep:
- General ledger
- Trial balance
- Cash books and bank statements
- VAT calculation workings
- Adjustments made in VAT returns
These records help the FTA trace figures from your VAT return back to your accounts.
Want VAT-ready bookkeeping? Our experts at TAXESMAN are here to help.
VAT Return and Payment Records You Must Retain
Another key part of the answer to “What records must I keep for VAT compliance?” is VAT filing history.
You must keep:
- Copies of submitted VAT returns (VAT201)
- VAT payment confirmations
- Correspondence with the FTA
- Any voluntary disclosures submitted
These documents are often requested during audits.
If you want all VAT filings stored and organized, TAXESMAN can manage this for you.
How Long Must VAT Records Be Kept in the UAE?
This is critical.
In most cases, VAT records must be kept for at least 5 years.
For real estate-related records, the retention period is 15 years.
This applies to both paper and electronic records.
If your business is not retaining records long enough, TAXESMAN can help you fix this before it becomes a problem.
Real Examples: What Records Must I Keep for VAT Compliance?
Dubai Example: SME Services Company
A Dubai-based consulting company must keep:
- All VAT invoices issued to clients
- Supplier invoices with VAT
- VAT return filings and payment proof
Without these, VAT compliance is incomplete.
Abu Dhabi Example: Trading Business
A trading company in Abu Dhabi must also keep:
- Import documentation
- Customs VAT records
- Stock and inventory records
VAT audits often focus heavily on these areas.
Free Zone Example: Startup With Overseas Suppliers
A free zone startup paying overseas suppliers must keep:
- Foreign invoices
- Reverse charge VAT calculations
- VAT return entries showing reverse charge
Missing these records is a common mistake.
TAXESMAN can review this setup for you.
Common Mistakes Businesses Make With VAT Records
When asking what records must I keep for VAT compliance, many businesses overlook these points:
- Keeping invoices but no VAT workings
- Losing older VAT returns
- Claiming input VAT without valid tax invoices
- Poor digital storage and backups
These mistakes can trigger penalties during an FTA review.
If you want peace of mind, let TAXESMAN handle your VAT records properly.
Conclusion: What Records Must I Keep for VAT Compliance?
To recap, what records must I keep for VAT compliance in the UAE?
You must keep:
- Sales and purchase invoices
- Accounting and VAT calculation records
- VAT returns and payment proof
- Supporting documents for at least 5 years (15 years for real estate)
VAT compliance is not just about filing returns. It is about having the right records ready when needed.
Don’t take chances with VAT audits. Let TAXESMAN manage your VAT records, bookkeeping, and compliance end to end.
FAQs: What Records Must I Keep for VAT Compliance?
What records must I keep for VAT compliance in the UAE?
Sales invoices, purchase invoices, VAT returns, accounting records, and VAT payment proof.
How long must VAT records be kept?
At least 5 years, and 15 years for real estate-related records.
Can VAT records be kept digitally?
Yes, as long as they are readable, accessible, and securely stored.
What happens if I don’t keep proper VAT records?
You may face penalties or issues during an FTA audit.
Who can help me manage VAT records properly?
TAXESMAN can handle VAT record keeping, bookkeeping, and VAT compliance for your business.