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The retention period depends on the tax. Corporate tax records are kept for 7 years after the end of the tax period. VAT records are kept for 5 years after the tax period, and VAT records related to real estate for 15 years. Not keeping required records is fined at AED 10,000 per violation.
Retention periods
| Record | How long | Source rule |
|---|---|---|
| Corporate tax records | 7 years after the end of the tax period | Corporate tax law, Article 56 |
| Records showing exempt status | 7 years | Corporate tax law, Article 56 |
| VAT and general tax records | 5 years after the tax period | Tax Procedures Executive Regulation, Article 3 |
| VAT records related to real estate | 15 years after the end of the tax period | VAT Executive Regulation, Article 71 |
The Tax Procedures regulation lists 7 years for real estate records in general, but it applies unless the tax law says otherwise. For VAT, the 15 year rule applies.
Source: Federal Tax Authority, corporate tax law and VAT executive regulation, checked .
The FTA can look back five years
The time limit for the FTA to audit or assess is generally 5 years from the end of the tax period, with exceptions. So 5 years is a minimum for being able to defend a VAT return. If you want to be safe for corporate tax, you already have 7.
Source: Federal Tax Authority, VAT law, checked .
Penalties
| Violation | Penalty |
|---|---|
| Not keeping required records | AED 10,000 per violation |
| Repeat within 24 months | AED 20,000 |
| Not giving records in Arabic when asked | AED 5,000 |
| Not helping the tax auditor | AED 20,000 |
These figures sit in the corporate tax and VAT penalty tables. The VAT table was changed from and we have read the consolidated table. Whether the corporate tax table changed after that date is not confirmed, so check the current table. See corporate tax penalties and VAT penalties.
Source: Federal Tax Authority, administrative penalties, checked .
Language: Arabic on request
If the FTA asks for records in Arabic, you must give them in Arabic. A company that keeps everything in English should plan for translation of key records, such as invoices and contracts, and know who will do it.
What to store
The law says records must be kept, and what counts depends on the tax. As a working list, keep:
- Sales and purchase invoices, credit notes and receipts.
- Bank and card statements.
- Contracts with customers and suppliers.
- Payroll and staff records.
- Fixed asset registers.
- Your trial balance, ledgers and the working papers behind each return.
- Customs and import documents, if you import.
- Evidence for exemptions or zero-rated supplies.
Good bookkeeping makes this easier, since entries link back to documents.
E-invoice data
Under the e-invoicing rules, e-invoice data no longer has to be stored in the UAE after the latest amendment, which took effect on . It must be kept for the period in the Tax Procedures Law. Our e-invoicing guide covers the timeline.
Source: Ministry of Finance, e-invoicing amendment news, checked .
Practical habits
Keep one folder per financial year. Name files by date and counterparty. Back up outside your laptop. When a company closes or changes advisers, keep a copy of everything for the longest period that applies to you.
Who keeps what: a quick split
If your company is VAT registered and also pays corporate tax, you carry both clocks at once. Keep the longer period for any record that serves both taxes, which means 7 years for most of it. Real estate related VAT records are the exception and run to 15 years. If you are unsure which clock applies to a document, keep it for the longer one.
When records leave your hands
If a firm keeps your records for you, make sure the contract says that you can get them back, in what format, and how fast. The duty to keep them stays with you, not with the firm. Penalties fall on the registrant.
