As a business owner, you are required to keep your accounting records for a certain period. This is important to meet the Tax Office’s requirements and ensure you have the correct documents available in case of audits or additional tax evaluations. However, how long, exactly, should you keep your records? In this blog, we’ll explain it to you.
What Does the Law Say About Retention Periods?
The Tax Office uses various retention periods to keep your accounting and administrative records. However, accounting records should generally be retained for up to 7 years. This includes:
- Purchase and sales administration
- Accounts receivable and accounts payable
- The general ledger
For real estate, a longer period of up to 10 years applies. This is because transactions involving real estate have a more extended impact and therefore need to remain accessible for inspection for a longer period.
When Does the Retention Period for My Accounting Start?
It’s important to know that the retention period only begins once the data has lost its relevance. For example, if you have a lease contract that lasts 4 years, you must keep this contract for the duration of this period. Only after these 4 years have ended does the 7-year legal retention period start, meaning you must keep your accounting records for an additional 7 years.
Exceptions and Agreements on Record Retention
There are some exceptions where shorter retention periods for your accounting records may be possible. For instance, you can make agreements with the Tax Office for a shorter retention period for specific administrative data. These agreements are documented in writing and provide some flexibility, but core data, such as accounts receivable and accounts payable, must always be retained for the full 7 years.
What Applies for Retaining Accounting Records for Individuals?
There is no official retention requirement for individuals, but it is recommended to keep administrative records such as payslips and bank statements for at least 5 years. This is the period during which the Tax Office can impose a retrospective tax evaluation. If, for example, there is a disagreement about a tax assessment, you’ll have the necessary evidence on hand.
Correctly keeping your administration is essential for every business owner. By following the legal retention periods of 7 to 10 years, you avoid issues with the Tax Office and are well-prepared for potential audits. Although you may keep your records longer, this is not legally required. Remember, you can consult with the Tax Office about shorter retention periods for specific data, but always retain core records for the full 7 years.
Would you like to learn more about retention periods or need help keeping track of your accounting? Contact us for expert advice and support. Together, we’ll make sure your administration is always in order!
