Concept Definition
What is data retention in e-invoicing?
Data retention refers to the obligation to keep invoice and transaction records for a minimum period defined by tax and commercial law. Retention periods range from 5 years (UAE) to 10 years (France) depending on the jurisdiction. Records must remain readable, accessible, and unaltered throughout the period.
What are the data retention periods by jurisdiction?
Key statutory retention periods for invoice records:
- France: 10 years for commercial invoices (Code de Commerce), 6 years for tax records (DGFiP).
- Germany: 10 years for accounting records including invoices.
- UAE: 5 years from the end of the tax period to which the records relate.
- Italy: 10 years for VAT records.
- Australia: 5 years for GST records.
Frequently Asked Questions
- Does the retention period start from the invoice date?
- Retention period start dates vary. In most EU jurisdictions, the period begins from the end of the financial year or tax period in which the invoice was issued, not from the invoice date itself. This means an invoice from January of year Y+1 may need to be retained until Y+11 depending on the rule.
- What must be retained alongside the invoice?
- Beyond the invoice itself, businesses must retain supporting records: purchase orders, contracts, delivery notes, payment records, and any audit trail entries related to the invoice. The complete set of records must demonstrate the authenticity and accuracy of the invoice.