Retention periods determine how long companies must keep certain business records available. As a rule, ten years apply to commercial books, inventories, opening balance sheets, annual financial statements, management reports, as well as work instructions and organisational documents required for their understanding. Accounting records must generally be kept for eight years; these regularly include incoming and outgoing invoices, insofar as they are accounting records. Received and sent commercial or business letters as well as other tax-relevant documents generally fall under the six-year period, unless a longer special period applies. The period generally begins at the end of the calendar year in which the respective document was created or completed. Ongoing audits, legal remedies or special regulations may necessitate a longer retention period.
Basics
Companies are obliged to retain documents relevant for tax and commercial law purposes for a specific period. The period generally begins at the end of the calendar year in which the respective document was created.
The duration depends on the type of substrate.
Legal framework
The retention periods are determined by commercial and tax regulations. Typical periods are:
- Ten years Books and records, inventories, opening balance sheets, annual financial statements and management reports, as well as the organisational documents required for their understanding.
- Eight years: Accounting vouchers, in particular incoming and outgoing invoices, insofar as they are accounting vouchers.
- Six years: Received and dispatched commercial or business letters as well as other tax-relevant documents, provided no longer retention period applies to them.
The deadlines apply regardless of whether documents are kept in paper or electronic form.
Systematic classification
Retention periods are closely linked to:
Structured archiving is a prerequisite for keeping documents available at any time within the deadlines.
Core requirements
- Complete archiving of all relevant documents
- Immutability and detectability of changes in digital documents
- Ensuring legibility throughout the entire retention period
- Organised storage with a clear structure
Typical procedure
- Capture and filing of the document (paper or digital)
- Allocation to the business transaction
- Archiving in accordance with internal regulations
- Deadline monitoring
- Proper destruction upon expiry of the deadline, provided no further legal grounds prohibit it
Practical relevance
In practice, a clear archive structure is crucial for retrieving documents during a Company audit to be able to submit promptly. Digital systems support deadline management and audit-proof storage.
Typical sources of error
- Incomplete archiving of receipts
- Missing deadline monitoring
- Premature destruction of documents
- Unstructured digital storage without clear allocation
FAQ
Do retention periods also apply to e-invoices?
Yes. Incoming and outgoing invoices must generally be kept for eight years. In the case of e-invoices, at least the structured invoice part must remain intact in its original form.
When does the deadline start?
The deadline generally begins at the end of the calendar year in which the respective document was created.
Can documents be stored digitally?
Yes, provided that the legal requirements for properness, immutability and availability are met.
Conclusion
Retention periods are a central component of compliance in accounting. They ensure the traceability of business transactions and guarantee that tax-relevant documents remain available for the legally required period.
Brasser Accounting Solutions GmbH is a specialised accounting service provider and part of a corporate group with Quint GmbH (tax consultancy/auditing) and Service Place Årjäng AB (Swedish tax office). BAS exclusively performs services according to § 6 No. 3 and 4 StBerG and does not provide tax or legal advice.
