Financial record keeping requirment
As a business owner, you have to keep a record of your financial administration. By law, the record-keeping requirement for you as an entrepreneur is 7 years. However, certain data from your company must be kept for 10 years. The Dutch Tax Authority may check your financial administration from 7 years ago, so make sure your data is stored properly.
What data must be kept for 7 years?
Financial data that deals with your income and expenses must be kept for 7 years. Think especially about the invoices and receipts you have stored, along with the corresponding contacts.
What data must be kept for 10 years?
Financial data relating to moveable property and rights to moveable property must be kept for 10 years for VAT purposes.
A 10-year record keeping requirement also applies if you use a one-stop shop system. For more information on a one-stop shop system, read the blog of Gekko (in Dutch).
Who must comply with the record-keeping requirement?
Business owners must comply with the 7-10 year record keeping requirement. But if you have your records done by a third person (accountant), this third person is also obliged to keep your records. Even after you quit your business, your financial records must be kept safely stored. This way, the Dutch Tax Authority can always do a final audit.
Private individuals do not have to comply with the record keeping requirement, but even for private individuals it can be useful to keep their financial records properly, at least for 5 years.