How long must I keep VAT records?

  records of fixed assets; inventory records and statements (including quantities and values) at the end of any relevant tax period and all records of stock-counts related to inventory statements. The above requirements exist in order to demonstrate a sufficient audit trail such that a VAT amount can be traced from a source document, for example an invoice, through to the final tax return. 13.2.2. For how long should records be kept? In general, a taxable person must keep the required records for a minimum of 5 years after the end of the tax period to which they relate. Before the expiration of the 5-year term, the FTA may, however, require the person to retain the records for a further period not exceeding 4 years, in the following cases:    if the taxable person’s tax obligations are subject to a dispute with the FTA; if the person is subject to an ongoing tax audit; or if the FTA has given a notice to the person that it intends to conduct a tax audit before the expiry of the 5-year record retention period. Where the taxable person owns real estate, the taxable person should retain the required records relating to the real estate for a period of 15 years after the end of the tax period to which they relate. 13.3. Archiving and retrieval requirements Businesses do not have to keep their records in any specific way or format. However, they must be kept in a way which will allow the FTA to easily check the information which has been used to complete the tax return. Furthermore, regardless of whichever way a taxable person chooses to store their archived records, they need to be made readily available in a legible format on request by the FTA. Examples of the manner in which records can be archived include:    Retention of the original documents (e.g. in paper or electronic form); Creating photocopies of the original documents; and Other ways of recording and preserving the information or data contained in the original document. A taxable person is not required to keep records on their premises. However, as pointed out above, the records must be readily available when requested by the FTA. For example, where the FTA attends your business premises to conduct a tax audit, businesses need to be able to provide the FTA with access to the relevant records in a timely and efficient manner. 52 VAT Guide | Taxable Person | VATG001

Article 78 - Record-keeping 1. Without prejudice to the provisions related to record-keeping stated in any other law, the Taxable Person shall keep the following records: a. Records of all supplies and Imports of Goods and Services. b. All Tax Invoices and alternative documents related to receiving Goods or Services. c. All Tax Credit Notes and alternative documents received. d. All Tax Invoices and alternative documents issued. e. All Tax Credit Notes and alternative documents issued. f. Records of Goods and Services that have been disposed of or used for matters not related to Business, showing Taxes paid for the same. g. Records of Goods and Services purchased and for which the Input Tax was not deducted. 35 Clause amended as per Federal Decree-Law No. 16 of 2024. 36 Clause amended as per Federal Decree-Law No. 16 of 2024. 37 Article amended as per Federal Decree-Law No. 18 of 2022. Federal Decree-Law No. 8 of 2017 and its amendments – As published by the Ministry of Finance 37 h. Records of exported Goods and Services. i. Records of adjustments or corrections made to accounts or Tax Invoices. j. Records of any Taxable Supplies made or received in accordance with Clause 3 of Article 48 of this Decree-Law, including any declarations provided or received in respect of those Taxable Supplies. k. A Tax Record that includes the following information: 1) Due Tax on Taxable Supplies. 2) Due Tax on Taxable Supplies pursuant to the mechanism in Clause 1 of Article 48 of this Decree-Law. 3) Due Tax after the error correction or adjustment. 4) Recoverable Tax for supplies or Imports. 5) Recoverable Tax after the error correction or adjustment. 2. The Executive Regulation of this Decree-Law shall specify the following: a. Time limits, controls and conditions for keeping the records listed in Clause 1 of this Article. b. Controls and procedures regarding the maintenance of the confidentiality of the records that may be accessed by the Authority in the case of Government Entities mentioned under Clause 2 of Article 72 of this Decree-Law.