Record keeping period

The situation

Records must be kept for 10 years, or 15 years for real estate businesses.

The law

• VAT Law, Royal Decree 121/2020 (records and time limits): Keep records 10 years (15 for real estate); assessment within 5 years, 10 if registration was late

What it means for you

Keep invoices, contracts, import records and returns. The Tax Authority can assess within 5 years, or 10 if registration was late, so keep records at least as long as the law requires.

What to do

1. Archive records by quarter.
2. Keep 10 years (15 for real estate).
3. Back up digital files.
4. Index for audit.

Related

• Refund position
• Late VAT return fine
• VAT evasion penalty
• Nil VAT return
• VAT return due date
• Claiming input VAT