VAT records to be kept

Updated on April 11, 2022

Overview

In the next paragraphs, we’ll discuss:

How long should you preserve your sales records and purchasing records?
In order to be eligible to reclaim VAT, you must keep complete and accurate records of all business transactions that could affect your tax obligations, such as the following:

books and records of business
Invoices, debit notes, receipts, and accounts receivable
Vouchers are rolled up in the cash register
In the VIES, records of the VAT are exchanged.
Intrastat returns bank statements that have been stamped with the single administrative documents (SADs).
To accurately calculate your VAT duty or payback, you’ll need up-to-date documents that are sufficiently precise. You must be ready to prove the accuracy of each transaction if Revenue audits your books.

What purchase records do you keep?

Purchasing items for resale should be tracked separately from non-resale purchases. You should also keep track of your imports and acquisitions within the community.

These are the facts you should have in your files:

a sequential number indicating the date on the purchase invoice (in the order in which the invoices are filed)
Supplier’s name, cost excluding VAT, and total VAT levied on purchases at each applicable VAT rate, individually recorded.

How long do you keep records for?

In most cases, you must keep all of your business’s books, records, and papers for a period of six years.

However, some records must be kept for a specific period of time.

All records relating to the rental of property must be kept for a period of six years following the expiration of the waiver of Value-Added Tax (VAT).

Records relevant to a claim or appeal to the VAT Appeal Commissioner must be kept for a period of six years or until the problem at hand is resolved if the claim or appeal is under VAT legislation.

Records relating to a matter under investigation or inquiry by Revenue must be kept for six years or until the case is resolved, whichever comes first.

Prior to July 1, 2008, you must keep records for six years after you sell your stake in a property for which VAT was previously charged, even if you no longer own the property.

To keep records for a shorter term, you’ll need approval in writing from the appropriate revenue agency.

Invoices issued on paper must be kept on paper if they are to be paid.

Records must be kept on paper and kept on-site by the state. Exceptions to this rule must be approved by Revenue and are subject to certain criteria.

The standards for electronic invoicing require that electronic records be recorded and preserved in line with those criteria.

Inspection of records

The Department of Revenue has broad authority to examine your financial records. If you or your employees refuse to cooperate with Revenue during an audit of your records, you are committing an offence. When tax collectors come to your business to look over your books, they will be able to prove their identification.