VAT and records

Record retention

Record retention is the duty to keep invoices and tax records for a set number of years, so they can be produced if the Authority (ZATCA) asks. The period is generally six years, and each business should confirm the position for its own case.

What it means

Records here means more than the invoices you issue. It covers credit notes and debit notes, the supplier invoices behind your input VAT and the other tax records of the business; keeping the sales invoices alone and neglecting the rest is not enough. They are generally kept for six years, though your own case may differ, so check the period with your accountant or the Authority.

Phase 1 of e-invoicing requires invoices to be issued and stored electronically in a structured form, so your archive is a digital one. That makes loss, not storage space, the main risk: a failed laptop, a staff member who leaves with the only login, or a software subscription that ends before the retention period does. That is why a backup copy matters.

A clinic that changes its accounting system at the end of its third year has a typical problem. The new system starts clean, yet invoices from those first three years must stay readable for years afterwards. Deciding where the old archive will live, and who can open it, is a job for the move date, not for the day the Authority asks. Meanwhile, the duty to keep the old invoices does not change.

In practice

Keep issued invoices, credit notes, debit notes and supplier invoices for the full period.
Confirm the retention period for your own case with an accountant or the Authority.
Store a second copy away from the device that issues invoices.
Before changing software, check that old invoices remain readable and searchable.

Questions about Record retention

How long must I keep invoices in Saudi Arabia?

Invoices and tax records are generally kept for six years. The word generally matters, because individual cases can differ, so confirm the period that applies to your business with an accountant or the Authority and then set a rule in your office that nobody deletes older files before that date.

Can I keep my invoices only in electronic form?

Phase 1 has invoices issued and stored electronically, so a digital archive is the expected form. Keep it complete, in order and readable for the whole period. Under Phase 2 a PDF/A-3 file can carry the XML, giving you a readable copy that holds the invoice data too. Confirm anything unusual with an accountant.

E-invoicing Phase 1 (generation phase)VAT return UBL XML Credit note

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