Working through it
Record retention feels like housekeeping until an FTA audit asks for a document from four years ago, at which point it becomes the difference between substantiating your position and conceding it. The obligation exists precisely so that the FTA can verify historic returns, so the records you must keep are the ones that evidence what you reported.
The headline period is 5 years generally; 15 years for real estate records. The extended fifteen-year period for real estate reflects the long life of property transactions and the fifteen-year window over which certain property VAT matters can be revisited. The five-year period covers the general run of business records.
The subtlety that catches people is when the clock starts. It runs from the end of the relevant tax period, not from when the document was raised, so a purchase invoice from early in a financial year effectively has to be kept slightly longer than five calendar years to cover the full period plus the retention window. In practice the safe approach is to keep everything for the period comfortably rather than calculate the exact expiry of each document, the cost of storage is trivial next to the cost of not having a record the FTA asks for.
Crucially, retention is not about keeping paper. Records can be kept electronically provided they are complete, legible, and can be produced when required. What matters is that the record exists and can be retrieved, not the medium it sits on.
What counts as a record you must keep
The obligation is broader than ‘the accounts’. It covers everything needed to verify your tax positions, which in practice means:
- Financial statements, ledgers and the trial balance for each period
- Sales and purchase invoices, and the tax invoices that support VAT
- Bank statements and reconciliations
- VAT records: returns, the calculations behind them, and evidence for zero-rating and exemptions
- Corporate tax records: registration, the computation, and support for any relief or election, now that A return is mandatory for every registered taxable person, including those at 0%, those electing Small Business Relief, and free zone companies with QFZP status
- Payroll and WPS records
- Import and export documentation, including customs paperwork
- Contracts and agreements, including related-party arrangements
The unifying test is simple: if a document supports a figure you reported to the FTA, keep it for the retention period. If in doubt, keep it, the marginal cost of storage is far below the cost of a gap.
The obligation survives the business
The most common and most dangerous misunderstanding is that retention ends when the relationship does. It does not.
If you deregister from VAT, you must still keep your VAT records for 5 years generally; 15 years for real estate records, because the FTA can still examine periods when you were registered. If you close or liquidate the company, the records must still be retained, responsibility typically falls to the person who was managing the entity, and a liquidator will expect them. If you change accountants, the records are yours and must move with you complete; a business that lets its old accountant hold the only copy and then loses access has a retention problem it created itself.
This is why the handover, whenever a relationship ends, matters so much. Before deregistering, closing, or switching firms, the question ‘do we hold a complete, retrievable set of our own records’ should be answered yes. If the answer is no, that is the first thing to fix, because reconstructing records years later, if it is possible at all, is slow, expensive, and may still leave gaps the FTA treats against you.
Keeping records so they are actually usable
Meeting the letter of the rule is keeping the records for the period. Meeting the spirit, and protecting yourself in an audit, is keeping them so they can actually be produced quickly and completely when asked.
That means an organised, ideally electronic, archive where a document can be found by period and type rather than a shoebox that technically contains everything and practically contains nothing retrievable. It means backups, so a single hardware failure does not destroy years of records. And it means the records tie together (invoices to the ledger, the ledger to the returns) so that when the FTA asks for support for a particular figure, the trail is intact.
Modern accounting software makes this largely automatic: transactions, attachments and reports live in one place and are retained by design. A business on a proper system rarely has a retention problem. A business on spreadsheets and email attachments has to be deliberate about it, and is the one most likely to discover a gap at exactly the wrong moment.
What people get wrong
- Assuming retention ends at deregistration or closure, when the obligation survives both.
- Counting from the invoice date rather than the end of the tax period.
- Letting a former accountant hold the only copy of your records.
- Keeping records that cannot actually be retrieved, which fails the spirit of the rule.
- Forgetting the fifteen-year period for real estate records.
- Relying on a single copy with no backup.
- Discarding support for zero-rating and exemptions, which the FTA specifically tests.
What to do about it
- Confirm you hold a complete set of your own records, not just your accountant’s copy.
- Keep everything for 5 years generally; 15 years for real estate records, from the end of the relevant tax period.
- Store records electronically and organised by period and type, with backups.
- Before deregistering, closing or switching firms, secure a complete handover.
- Make sure the records tie together: invoices to ledger to returns.
Related questions
Frequently Asked Questions
How long must I keep accounting records in the UAE?
Generally 5 years generally; 15 years for real estate records. The clock runs from the end of the relevant tax period, not from when the document was created, and the obligation applies across VAT and corporate tax.
When does the retention clock start?
From the end of the tax period the records relate to, not the date on the document. In practice this means a document from early in a financial year must be kept slightly longer than five calendar years to cover the full period plus the retention window, so keeping everything comfortably for the period is the safe approach.
Do I still keep records after deregistering?
Yes. Deregistering from VAT or closing the business does not end the retention obligation. You must keep the records for 5 years generally; 15 years for real estate records because the FTA can still examine periods when you were registered or trading. Retention survives the events that feel like an ending.
Can I keep records electronically?
Yes. Records can be kept electronically provided they are complete, legible and can be produced when required. The medium does not matter; retrievability does. Modern accounting software retains transactions, attachments and reports by design, which makes electronic retention the easiest route.
What records do I have to keep?
Everything that supports a figure you reported, financial statements, ledgers, sales and purchase invoices, bank statements, VAT and corporate tax records including support for reliefs and zero-rating, payroll, import/export documents and contracts. If a document evidences something you told the FTA, keep it.
What is the penalty for not keeping records?
AED 10,000 first offence, AED 20,000 for repeat (Cabinet Decision 129 of 2025) Beyond the fixed penalty, the greater risk is being unable to substantiate a position in an audit, which can turn a defensible figure into a conceded one and drive additional tax and penalties.
Why is real estate fifteen years?
Property transactions have a long life and certain property VAT matters can be revisited over an extended window, so real estate records carry a fifteen-year retention period rather than the general five. If you hold or deal in property, apply the longer period to the related records.
What happens to records when a company closes?
They must still be retained for the required period. Responsibility typically falls to the person who managed the entity, and a liquidator will expect a complete set. Securing your own complete, retrievable records before closure is essential, because reconstructing them afterwards is slow and may be impossible.
Whose records are they if I switch accountants?
Yours. The records must move with you complete when you change firms, do not leave your former accountant holding the only copy. A clean handover of a complete set is part of switching properly, and failing to get one creates a retention problem you caused yourself.
Tell us your history, any deregistrations, closures or accountant changes. We will check you hold a complete, retrievable set for the full retention period and fix any gaps before the FTA finds them.
Check my compliance status 058 101 9570
Last reviewed 27 July 2026. Rates, thresholds and deadlines change, the e-invoicing provider deadline has already moved once. Confirm current requirements with the Federal Tax Authority before acting, or ask us to check your position.