- Apply the relevant tax rules and any longer overlapping requirement.
- Keep source documents and calculations as well as final returns.
- Review holds and exceptions before deleting records.
Distinguish the rules before setting deletion dates
For corporate tax, the FTA says taxable and exempt persons must retain relevant records for at least seven years after the end of the tax period. Its recordkeeping reminder also explains the need to support returns or exempt status. General VAT records follow the five-year period after the relevant tax period, while Article 71 of the VAT Executive Regulation requires relevant real-estate records for fifteen years after the tax period.
These are not interchangeable labels. The Tax Procedures Executive Regulation contains its own periods and extensions, while tax-specific provisions can set different requirements. Do not confuse its seven-year real-estate provision with the VAT-specific fifteen-year rule. Other company, employment, contractual or sector obligations may also need consideration.
| Record context | Starting point for the retention assessment |
|---|---|
| Corporate tax | At least 7 years after the relevant tax period: FTA guidance |
| VAT records | Generally at least 5 years after the tax period: Tax Procedures Executive Regulation; relevant real-estate records 15 years: VAT Executive Regulation |
| Audit, dispute or overlapping obligation | Check extensions and all applicable requirements before approving destruction. |
Keep an inventory of records and their owners
List the records used to prepare the accounts: sales and supplier invoices, credit notes, statements, payroll information, asset schedules, stock counts, contracts and supporting correspondence. Add the tax working papers, elections, approvals, submitted returns and payment confirmations. A final report alone may not explain how its figures were reached.
For each record group, identify the system or folder, responsible person, related entity and period, access permissions and planned review date. Include records held by external accountants, payroll providers and former staff. The inventory should reveal gaps such as an old email account containing the only signed contract or a supplier portal from which historic invoices have never been downloaded.
Design an archive that can answer a question
Organise the archive by legal entity, financial period and record type. Give documents consistent names containing a date, counterparty and reference. Link the file reference to the ledger where possible. Keep original exports and supporting attachments alongside final reconciliations so that a later reviewer can follow the sequence.
A useful retrieval test is to choose one amount from a filed return and trace it back to its schedule, ledger and source document. Ask someone who did not prepare the file to perform the test. If they need to search several personal inboxes or ask a former employee, improve the structure now. An archive is successful when records are understandable, not merely when storage space is available.
Make digital records readable and durable
FTA Decision No. 4 of 2026, effective 30 July 2026, requires electronic copies or photocopies to preserve all original details and pages in order, remain clearly legible and be accessible to the FTA when requested. Partial scans are not accepted. Outsourcing storage is permitted, but the business remains legally responsible for the records and their safety.
Check exports before cancelling software subscriptions. Preserve transaction detail, attachments, the chart of accounts, tax reports and audit history available from the system. Store backups separately, restrict access appropriately and test restoration. Record the password-recovery and account-ownership arrangements so that the archive does not depend on one person’s device. When changing advisers, agree the file handover before access to the old system ends.
Use controlled review rather than automatic deletion
Set a review date, not an unconditional destruction instruction. Before deleting a period, check for open enquiries, disputes, audits, carry-forward positions, long-term assets and any overlapping obligations. Record the decision, the records covered, the basis and the approver. If the period must remain on hold, make that status visible to the person managing storage.
For example, an asset invoice might support the purchase-year accounts and later calculations involving the same asset. Filing the original return does not make the invoice irrelevant. Similarly, closing a company or changing accountants should trigger an archive handover, not a routine disposal of the documents. Build retention into the engagement and exit process so that the business remains able to retrieve its history.
Questions about this guide
Is keeping everything for seven years always enough?
No. Some records have longer requirements, including relevant VAT real-estate records, and specific circumstances can extend retention. Use a record-by-record policy that considers all applicable obligations rather than treating one headline period as a universal deletion date.
Are cloud records automatically a sufficient archive?
Cloud storage can be useful, but check whether you can export, open and retrieve the documents for the required period. Access can change when subscriptions end or staff leave. Keep controlled backups and test that transaction detail and attachments remain connected.
Can my accountant hold the only copy?
Agree access, retention and handover terms explicitly. As a practical control, the business should be able to obtain its own complete records and should know where they are stored. Avoid depending on an individual adviser’s email account or an undocumented folder structure.
What should I do with incomplete historical files?
Create a missing-records list, identify alternative evidence and ask the relevant counterparties for copies. Keep a record of what was recovered and what remains unresolved. Do not manufacture supporting documents or silently replace missing detail with unexplained totals.
Sources and further reading
Research checked on 5 October 2026. Requirements can change; check the linked authority guidance for the latest position.
- FTA: Corporate tax recordkeeping reminder
- FTA: VAT Executive Regulation, consolidated amendments effective 1 October 2026, Article 71
- FTA: Tax Procedures Executive Regulation, recordkeeping provisions
- FTA: Decision No. 4 of 2026 on maintaining accounting records and commercial books
Firswood Tax Advisory LLC
Firswood provides accounting, VAT and corporate tax services through its own qualified team in the UAE. The team includes ACCA-qualified professionals and an FTA-registered tax agent.
This guide explains the records and questions involved in the work. The official sources are listed above, with a research date. Advice on your business requires a review of its circumstances and records.
