Last updated: 14 October 2026
How long do you need to keep VAT records?
You must keep VAT records for at least 6 years. For businesses using the Capital Goods Scheme, records for land and buildings must be kept for up to 10 years after the adjustment period. If you use the VAT MOSS or One Stop Shop schemes, keep records for 10 years. Under Making Tax Digital, your records must also be kept digitally in compatible software or in linked spreadsheets.
What counts as VAT records
- Sales and purchase invoices, including credit and debit notes
- Your VAT account, showing the VAT you owe and can reclaim for each period
- Import and export documents, including postponed VAT statements
- Records of goods you take for private use
- Adjustments, such as bad debt relief and error corrections
- Copies of VAT returns and the workings behind each figure
Making Tax Digital record-keeping
Under MTD for VAT, you must keep these digital records:
- your business name, address and VAT number
- any VAT schemes you use
- for each sale and purchase: the date, the value excluding VAT and the VAT rate
- the VAT account totals that go on each return
Data must flow between spreadsheets and software through “digital links”. Copying and pasting by hand between them is not allowed.
Retention periods at a glance
| Record | Keep for |
| Standard VAT records | 6 years |
| Capital Goods Scheme (land and buildings) | 10 years from the start of the adjustment period, plus 6 |
| One Stop Shop or MOSS records | 10 years |
| Corporation tax records | 6 years from the end of the accounting period |
| Self Assessment records (sole traders) | 5 years after the 31 January filing deadline |
Paper or digital?
You can scan paper invoices and destroy the originals if the copies are clear and complete, and include both sides where needed. Store them securely and back them up. Cloud tools such as Dext make this easy. See Receipt Bank (now Dext).
Penalties for poor records
HMRC can charge up to £3,000 for failing to keep adequate records. Without records, HMRC may estimate your VAT, and those estimates are rarely in your favour. Missing invoices also mean you can’t support input VAT claims at an inspection.
Selling or closing a business
If you sell your business as a going concern, the buyer may need your records. See VAT records when selling your business. If you close the business, keep them for the full retention period after your last return.
Common record-keeping mistakes under MTD
Copying figures from spreadsheets into software by hand breaks the digital link rule. Use bridging software or a direct import instead. Keep scanned receipts with the original details readable, and record each sale and purchase individually. Back up your software data regularly in case your provider changes.
Frequently asked questions
Can I keep records for less than 6 years?
Only if HMRC agrees in writing, which is rare.
Do I need to keep emails?
Keep any that form part of your contracts or invoices.
Can I keep my records outside the UK?
Yes, if HMRC can access them when asked.
What if my software provider closes?
Export your data and keep it accessible for 6 years.
Related: VAT late filing penalties.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with VAT records and Making Tax Digital. See our VAT accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
