What records do I need to keep for tax?
You must keep: all sales invoices (issued), all purchase invoices and receipts (received), bank and credit card statements, payroll records, VAT returns (if registered), expense claims, asset purchase records, and loan agreements. In most countries the retention period is 5–7 years. Records can be digital — scanned copies or PDFs are acceptable.
The principle is simple: if a transaction affects your tax, you need evidence. That means every sale, every purchase, every expense, and every payment. The tax authority can ask for proof of any number on your tax return, and if you cannot produce it, they may disallow the deduction and charge back-taxes plus penalties.
The specific records depend on your business type. A service business keeps invoices and bank statements. A product business adds inventory records, shipping documents, and supplier contracts. A business with employees adds payroll records, employment contracts, and pension contributions. A VAT-registered business adds VAT returns and the invoices that support each line on those returns.
Digital records are accepted in most jurisdictions. Scan paper receipts, keep email invoices as PDFs, and download bank statements monthly. Cloud accounting software stores these automatically. The key rule: store them systematically — a shoebox of receipts is technically "keeping records" but functionally useless when you need to find a specific transaction.
Related questions
How long must I keep tax records?
Typically 5–7 years from the end of the tax year they relate to. In the UK it is 6 years. In Ireland it is 6 years. In Greece it is 5 years (10 for certain cases). In Cyprus it is 7 years. Check your local tax authority — penalties for premature destruction can be severe.
Are scanned receipts accepted by tax authorities?
Yes, in most countries. The UK (HMRC), Ireland (Revenue), and most EU tax authorities accept digital copies as evidence, provided they are legible and complete. Some require specific formats or time-stamping — check local rules for digital record-keeping standards.