Records need to be kept for at least 5 years. You will have to keep:
- records of all supplies and imports of goods and services;
- all tax invoices and tax credit notes and alternative documents received;
- all tax invoices and tax credit notes and alternative documents issued;
- records of goods and services that have been disposed of or used for matters not related to the business, detailing the VAT paid on those goods and services;
- records of goods and services purchased for which the input tax was not deducted;
- records of exported goods and services; and
- records of adjustments or corrections made to accounts or tax invoices.
In addition, you will need to keep a VAT record or account which shows:
- output tax due on taxable supplies;
- output tax due on taxable supplies accounted for via the reverse charge mechanism;
- output tax due after the correction of any errors or adjustments;
- input tax recoverable on supplies or imports; and
- input tax recoverable after the correction of any errors or adjustments.
Moreover, like all businesses, you will have to keep accounting records and documents that relate to your business activities. Such records and documents, include:
- balance sheet and profit and loss accounts;
- records of wages and salaries;
- records of fixed assets;
- inventory records and statements (including quantities and values) at the end of any relevant tax period and all records of stock-counts related to inventory statements.