How long should financial records be kept? In the Netherlands the rule is seven years, for paper and digital documents alike, with ten years for data on immovable property. This article sets out the retention period per type of document, explains why the obligation exists, and covers the one category that causes the most trouble in practice: till receipts on thermal paper that fade long before the seven years are up.
Table of contents
How long financial records must be kept
The main rule is seven years, laid down in the Dutch General Tax Act (Algemene wet inzake rijksbelastingen). The period starts once a financial year or an agreement has ended, so a contract signed years ago still counts from the moment it expires. For data on immovable property, such as business premises, the period is ten years. The rule makes no distinction between paper and digital: both formats carry the same obligation.
Retention period per type of document
Not every document carries the same period. These are the most common ones:
- Purchase and sales invoices: seven years
- Receipts and till receipts: seven years
- Bank statements: seven years
- Payroll records: seven years
- Contracts and agreements: seven years after they end
- Data on immovable property: ten years
Unsure about a specific document? The Dutch Tax Administration sets out the retention rules in full, and your accountant can advise on your own situation.
Why the retention obligation exists
The obligation gives the tax authorities the ability to check returns and it gives you the ability to account for what you claimed. That second half is easy to forget. A supplier disputes an amount, a customer questions an invoice, or an auditor asks how a cost was allocated: in each case the document behind the entry settles it. Records that are complete and findable protect you as much as they serve the tax office.
Keeping receipts: the paper fades
A receipt is your proof of purchase: it shows what was bought, when, for how much and at which VAT rate. For business expenses it falls under the same seven-year obligation as your invoices. In practice it is also the document that causes the most trouble, because most till receipts are printed on thermal paper and thermal paper fades. A receipt that has gone blank after two years no longer meets the requirement that a document stays legible.
You may replace a paper receipt with a digital version, provided all the details are preserved and the file stays legible and available for the full retention period. So photograph the receipt at the till rather than at the end of the month, while it is still sharp and before it goes missing. If you are unsure whether the paper original can be discarded, check with your accountant.
With the receipt scanner app from TriFact365 your colleagues do exactly that with a photo, after which the receipt lands in your administration with the date, amount and VAT already read.
Can you keep your records digitally?
Yes. Records may be kept entirely digitally, as long as the documents remain authentic, complete and legible throughout the retention period. Digital storage is usually the safer option: ink does not fade, nothing is lost to fire or water damage, and a document can be found by supplier or amount instead of by searching through folders.
Tips for meeting the obligation
- Digitise documents when they arrive, not at the end of the quarter.
- Keep the original document attached to the entry it belongs to.
- Make sure documents stay searchable, by supplier, amount or period.
- Check that you can still export everything if you change accounting software.
Frequently asked questions
Seven years as a rule, counted from the end of the financial year. For data on immovable property the period is ten years.
Invoices, receipts and bank statements are kept for seven years, like the rest of your records. Digital storage is allowed as long as the documents stay legible.
A digital version may replace the paper receipt, provided all details are preserved and the file stays legible and available for the full period. Since thermal paper fades, scanning on arrival is often safer than keeping the original. Check with your accountant if you are unsure.
Yes, entirely digitally, provided the documents remain authentic, complete and legible throughout the retention period.
The tax authorities can reject your records and impose an additional assessment or a fine. Keeping everything digitally and searchable is the practical way to avoid that.
