Record-keeping and bookkeeping requirements for UAE businesses

The short version

Running a UAE business means keeping two separate sets of financial records for two separate taxes, VAT and Corporate Tax, and they are not kept for the same length of time. Missing either obligation is treated by the Federal Tax Authority (FTA) as a compliance failure in its own right, independent of whether you actually owe any tax.

Why there are two different retention periods, not one

VAT and Corporate Tax are separate taxes with separate legal bases, and the UAE's record-keeping rules for each were set at different times under different legislation. A business registered for both needs to track both clocks rather than assuming one retention period covers everything.

VAT records: five years, longer for certain categories

According to a secondary source citing Article 70 of the UAE VAT Law, most VAT records must be kept for five years, counted from the end of the relevant tax period. Two categories are kept longer:

• Capital asset records: 10 years.
• Real estate-related records: 15 years.

The same source states that the FTA can require records to be kept for up to four additional years where there is an ongoing audit, dispute or investigation, on top of the standard period.

Corporate Tax records: seven years

A Gulf News report attributing its guidance to the FTA states that taxable persons must keep records for at least seven years after the end of each tax period, covering:

• Transaction records.
• Asset and liability records.
• Shareholding records.

These records allow the FTA to assess a business's taxable income. Businesses that are exempt from Corporate Tax are still expected to keep records that prove their exemption status, depending on the basis of the exemption under the Corporate Tax Law.

What happens if records are not kept

The Gulf News report states only that missing deadlines or failing to keep proper documentation "could result in fines under UAE tax laws," without naming a figure for Corporate Tax specifically. Separately, for VAT, a secondary source cites administrative penalties of:

• AED 10,000 for a first failure to maintain required VAT records.
• AED 20,000 for a repeated failure.
• AED 20,000 for failing to present VAT records in Arabic when the FTA requests them.

Neither of these penalty figures was confirmed against a primary FTA fee or penalty schedule this round. Treat them as reported, not as a confirmed current figure, and check the FTA's own penalty schedule before relying on an exact amount.

General consumer information only, not legal advice. Rules and regulations can change, so check the latest official guidance for your circumstances.

The practical takeaway

Keep VAT records for at least five years, longer for capital assets and real estate, and keep Corporate Tax records for at least seven years, measured from the end of the relevant tax period in each case, not from today. Treat both as running from day one of registration, not from your first filing, and confirm your own retention schedule and any penalty exposure directly with the FTA or a qualified UAE tax adviser rather than from this guide's secondary sources alone.