Records retention obligation: what, how long and how?
How long do you need to keep your bookkeeping? Which documents fall under the retention obligation? And is digital storage allowed? Everything about the fiscal retention obligation for entrepreneurs.
What is the retention obligation?
The fiscal retention obligation is the legal obligation for entrepreneurs to retain their records for a fixed period. In the Netherlands, a retention period of seven years applies for most business documents, including invoices, bank statements, cash records and VAT returns. For documents relating to immovable property, a period of ten years applies. The Belastingdienst can request your records during an audit, and if documents are missing you risk a fine or an additional assessment. Digital storage is permitted, provided the files remain legible and unaltered throughout the entire retention period. With accounting software like Giroo, all your documents are automatically stored in the cloud, so you always comply with the retention obligation.
How long do you need to retain records?
7 years: the standard
Most administrative documents must be retained for 7 years, counted from the end of the financial year:
- Purchase invoices and sales invoices
- Bank statements
- Cash records
- General ledger and journal entries
- VAT returns and overviews
- Correspondence about business transactions
10 years: immovable property
For documents relating to immovable property (purchase, renovation, rental) a retention obligation of 10 years applies.
Which documents exactly?
Required to retain
- Invoices (purchases and sales)
- Bank statements of all business accounts
- Cash book and till receipts
- Contracts and agreements
- Quotes (to the extent they result in orders)
- Personnel records (if applicable)
- Inventory records
- Software and files needed to read the records
Not required but advisable
- Email correspondence with customers and suppliers
- Notes and calculations for complex postings
- Backup of your accounting software
Digital storage: is that allowed?
Yes, the Belastingdienst accepts digital records, provided:
- The documents remain legible throughout the retention period
- The documents cannot be altered (or alterations are traceable)
- You can make the documents available within a reasonable time
Note: original paper documents that you digitise may be destroyed. However, for invoices received digitally, you must retain the original digital file — a printed and rescanned invoice is not sufficient.
Tips for good archiving
- Make a monthly backup of your accounting software
- Store invoices in PDF format — this is the most future-proof
- Use a logical folder structure — per year and per type
- Save to the cloud — protects against fire or theft
- Automate where possible — Giroo stores all your documents automatically
Also read our article on bookkeeping for beginners and how to prepare the annual report.