Retention periods are legally defined periods during which companies must retain certain documents and records. They serve to ensure the traceability of business transactions and to allow for audits by authorities.
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, inventories, annual financial statements, management reports, booking documents, and documents with tax relevance.
- Six years: Received and sent commercial or business letters, as well as other tax-relevant documents, provided they do not fall under the ten-year retention period.
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. Electronic invoices are subject to the same legal retention periods as paper invoices.
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.
