How Long Must You Keep Business Records in the UAE? The FTA's Rules Explained
Businesses must keep their tax and accounting records for at least seven years from the end of the tax period they relate to. That is the Corporate Tax rule, and it is the longest general period most businesses face. VAT-only records need five years, Capital Assets Scheme records at least ten, and real estate records kept for VAT purposes fifteen. Each period can stretch further if the FTA notifies an audit, a dispute is open, or a refund claim is still waiting for a decision.
Ask ten business owners how long they need to keep invoices and most will say “five years.” That answer made sense when VAT was the only federal tax. It is no longer the safe one.
Since Corporate Tax arrived for tax periods starting on or after 1 June 2023, one sales invoice is both a VAT record and a Corporate Tax record, and the longer rule wins. 2026 also brought amendments that extend retention in specific cases. Here is the full picture, with a source for every number.
The UAE Record Retention Periods at a Glance
Record type | Minimum period | Clock starts | Legal source |
Corporate Tax records | 7 years | End of the tax period | Art. 56, Federal Decree-Law No. 47 of 2022 |
VAT and other tax records of a Taxable Person | 5 years | End of the tax period | Art. 3(1)(a), Cabinet Decision No. 74 of 2023 |
Records of persons who are not Taxable Persons | 5 years | End of the calendar year the document was created | Art. 3(1)(b), Cabinet Decision No. 74 of 2023 |
Capital Assets Scheme records (VAT) | At least 10 years | Not specified in the law | Art. 60(2), Federal Decree-Law No. 8 of 2017 |
Real estate records (VAT) | 15 years | End of the tax period | VAT Executive Regulation |
Company accounting registers | At least 5 years | End of the financial year | Art. 26(2), Federal Decree-Law No. 32 of 2021 |
A note on real estate: the Tax Procedures Executive Regulation sets seven years for real estate records, but only “unless the Tax Law states otherwise.” The VAT Executive Regulation does state otherwise, so property records relevant to VAT should be kept for fifteen years.
When the Retention Clock Keeps Running
Article 3(2) of Cabinet Decision No. 74 of 2023 adds extra time on top of the base periods. You must keep the relevant books and records:
- For four more years, or until the dispute is finally settled, whichever is later, if you are in a dispute with the FTA over your tax obligations.
- For four more years if you are subject to an ongoing tax audit.
- For four more years if the FTA notified you of its intention to audit before your normal period expired.
- For one more year from the submission date if you file a voluntary disclosure in the fifth year after the relevant tax period.
- For two more years if you have submitted a refund application and the FTA has not yet issued a decision. This one is new, added by Cabinet Decision No. 17 of 2026 with effect from 1 April 2026.
If you act as a legal representative for another person, you must also keep their books for one year after that representation ends.
What Changed in 2026
- Federal Decree-Law No. 17 of 2025 (effective 1 January 2026) amended the Tax Procedures Law. The FTA generally has five years from the end of a tax period to audit or assess, but that window extends to fifteen years for tax evasion or failure to register. The law also introduced a five-year limit for claiming refunds of credit balances, with a transitional window to 31 December 2026 for older balances.
- Cabinet Decision No. 17 of 2026 (effective 1 April 2026) amended the Executive Regulation, adding the two-year extension for pending refunds and allowing the FTA to extend how long it holds seized documents during an audit.
- Cabinet Decision No. 129 of 2025 (effective 14 April 2026) revised the VAT and Excise penalty schedule. The record-keeping penalty stayed at AED 10,000 per violation and AED 20,000 for a repeat within 24 months.
The 15-year gap nobody talks about;
The law lets the FTA reach back fifteen years in evasion or non-registration cases, but no retention rule asks you to keep records that long. If the FTA ever alleges evasion for an old period, your documents are your defence. Keeping core records (general ledger, bank statements, contracts and filed returns) beyond the minimum is a judgement call worth discussing with your accountant.
What Counts as a "Record"?
Article 2 of the Executive Regulation is broader than most people expect: financial statements, wage and salary records, fixed asset registers, year-end inventory and stock count records, plus every document behind an entry, from invoices and contracts to correspondence and the working papers behind any tax election or calculation. The FTA’s public clarification TAXP006 confirms this includes related party and transfer pricing documentation.
E-invoicing adds another layer. Under Article 55(1)(c) of the VAT Law, where a tax invoice must be issued as an electronic invoice, you need to retain it in line with the Electronic Invoicing System to recover the input VAT. Businesses with revenue of AED 50 million or more go live on 1 January 2027, and the rest follow on 1 July 2027. See our VAT compliance support for how this fits your filing cycle.
Paper, PDF or Cloud: Format and Language Rules
You do not need to keep paper. Article 4 of the Executive Regulation accepts the originals or a record whose information is identical to them, provided you can produce a readable copy within the period the FTA sets. Scanned files and cloud systems work if the data is complete and retrievable.
Language is flexible too. Under Article 5, the FTA can accept records in English but may ask you to translate some or all of them into Arabic through an approved translator. Failing to submit records in Arabic when requested now carries a fixed AED 5,000 penalty.
Penalties for Poor Record-Keeping
Violation | Penalty (AED) | Source |
Failure to keep required records (VAT, Excise, Tax Procedures) | 10,000 per violation; 20,000 if repeated within 24 months | Cabinet Decision No. 40 of 2017, as amended by No. 129 of 2025 |
Failure to keep required records (Corporate Tax) | 10,000 per violation; 20,000 if repeated within 24 months | Cabinet Decision No. 75 of 2023 |
Failure to submit records in Arabic when requested | 5,000 | Both decisions above |
The fixed penalty is often the smaller problem. Without valid invoices and working papers, you cannot defend an input VAT claim or a Corporate Tax deduction.
A Practical Retention Policy for UAE SMEs
- Set seven years as your default for anything that feeds a Corporate Tax return.
- Tag real estate files (fifteen years) and capital asset files (at least ten) separately.
- Put a “legal hold” on any period with an audit notice, an open dispute, a fifth-year voluntary disclosure or a pending refund.
- Export full history before you switch accounting software or change accountants.
- Keep a simple retention register showing what is stored, where, and its release date.
If your books have gaps from earlier years, fix them before an audit notice arrives. Our accounting and bookkeeping team handles catch-up and clean-up work for exactly this reason.
How PROFITZ ADVISORY Helps You Stay Audit-Ready
PROFITZ ADVISORY is a UAE accounting, bookkeeping, VAT and Corporate Tax advisory firm working with SMEs, Free Zone operators and growing businesses across all seven emirates since 2020. Record-keeping is where most of our FTA work starts, because the quality of your books decides how an audit goes.
- Record-keeping review: we map what you hold today against the 5, 7, 10 and 15-year rules and flag the gaps.
- Catch-up and clean-up bookkeeping: we rebuild missing ledgers, reconciliations and supporting schedules for prior years.
- Retention policy and legal holds: we set up a simple register that tracks release dates, audit notices, voluntary disclosures and pending refunds.
- VAT and Corporate Tax compliance: returns, voluntary disclosures and refund claims prepared with the working papers the FTA expects to see.
- FTA audit support: we organise document requests and respond to queries alongside your team.
Not sure your records would survive an FTA audit?
PROFITZ ADVISORY reviews your record-keeping, closes gaps in prior-year books, and builds a retention policy that matches your VAT, Corporate Tax and e-invoicing obligations across all seven emirates.
Talk to our team before the FTA asks for documents you cannot find.
Frequently Asked Questions
Do I keep VAT records for five years or seven?
The VAT minimum is five years after the tax period. But if you are also subject to Corporate Tax, most of those same records support your tax return, so keep them for seven.
When does the seven-year Corporate Tax clock start?
At the end of the tax period the record relates to, not the date it was created. A record for the year ending 31 December 2025 should be kept until at least 31 December 2032.
Can I store business records only in digital form?
Yes. The FTA accepts electronic records if the information matches the original and you can produce a readable copy on request.
Do Free Zone companies follow the same rules?
Yes for federal taxes, which apply to Free Zone entities too. Your Free Zone authority may add its own rules, so check your licence terms.
What happens to retention if I have a refund claim pending?
From 1 April 2026, if the FTA has not decided your refund application, keep the supporting records for an additional two years.
