Keep tax and VAT records for five years from the date the return was submitted. Keep company accounting records for seven years under the Companies Act. Keep employment records for three years after termination. Keep the Memorandum of Incorporation, share register and beneficial ownership records for as long as the company exists.
The periods differ because different Acts impose them, and the safe approach is to work to the longest one that applies to a document rather than trying to track each separately.
The retention table
| Record | Keep for | Under |
|---|---|---|
| Tax returns and supporting documents | 5 years from submission | Tax Administration Act |
| VAT records — tax invoices, credit notes, import documents | 5 years | VAT Act |
| Payroll records — payslips, EMP201s, IRP5s | 5 years | Tax Administration Act |
| Company accounting records | 7 years | Companies Act |
| Annual financial statements | 7 years | Companies Act |
| Employment contracts and records | 3 years after termination | BCEA |
| Memorandum of Incorporation | Indefinitely | Companies Act |
| Securities/share register | Indefinitely | Companies Act |
| Beneficial ownership records | Indefinitely | Companies Act |
| Minutes of shareholder and board meetings | 7 years | Companies Act |
| Records under audit or dispute | Until resolved, then the normal period | — |
The practical rule: keep everything for seven years. Trying to apply five different retention periods to overlapping documents costs more in administration than the storage saves.
Where the five-year rule starts
For tax records the five years runs from the date the return was submitted, not from the transaction date.
That matters. An invoice from March 2024 relates to the 2024 tax year, whose ITR14 might be submitted in February 2026 — so the retention period runs to February 2031, nearly seven years after the invoice.
Where a return was never submitted, the obligation to retain the records continues indefinitely until it is.
Where SARS has commenced an audit, verification, objection or appeal, records must be kept until the matter is concluded, even if the normal period has expired.
Electronic records are fine
You do not need paper. Records may be kept electronically provided they are:
Complete and unaltered
Legible and readable
Accessible and retrievable for the whole retention period
Kept in a form SARS or CIPC can access on request
What this means practically:
A searchable folder structure works. Year → month → category, with consistent file naming.
Accounting software with document attachment works better, because the source document is linked to the transaction — which turns a SARS verification into a filter and an export rather than a week of searching.
A phone camera roll does not work. Nor does an email inbox as your only archive. Both fail the "accessible and retrievable" test, and both disappear when someone leaves.
Back it up. "The laptop was stolen" is not a defence to a SARS request. Cloud storage with version history is the minimum sensible standard.
What counts as a record
Broader than people assume. For SARS purposes, records include anything that enables you to substantiate what you declared:
Invoices issued and received
Bank statements for every account
Credit and debit notes
Contracts and agreements
Asset registers and purchase documentation
Payroll records and tax directives
Import and export documentation
Logbooks for vehicle claims
Stock records
Loan agreements
Correspondence relevant to a tax position taken
The test to apply: if you had to prove a number on a return five years from now, what would you show? Keep that.
The consequences of not keeping them
Deductions and input VAT get disallowed. No document, no claim — regardless of whether the expense was genuine.
Assessments can be raised on estimate. Where records are inadequate, SARS can determine your liability on the information available.
Understatement penalties become more likely. Inadequate records make it harder to demonstrate reasonable care, which sits at the lower end of the penalty scale.
It is an offence. Failure to retain records as required is a contravention of the Tax Administration Act.
Companies Act consequences. Failure to keep accounting records is a contravention, and CIPC can issue a compliance notice.
Frequently asked questions
How long must I keep financial records in South Africa? Five years for tax and VAT records from the date the return was submitted, seven years for company accounting records and annual financial statements under the Companies Act, three years for employment records after termination, and indefinitely for the MOI, share register and beneficial ownership records.
How long must I keep tax records for SARS? Five years from the date the return was submitted. Where a return was never submitted, the obligation continues until it is. Where an audit, verification, objection or appeal is under way, records must be kept until the matter is concluded.
Can I keep records electronically? Yes, provided they are complete, unaltered, legible, and accessible and retrievable for the whole retention period. A searchable folder structure or accounting software with document attachment both qualify. A phone camera roll or an email inbox alone does not.
How long must I keep VAT invoices? Five years. This applies to tax invoices for supplies made, credit and debit notes, and bills of entry for goods imported or exported.
What happens if I do not keep records? Deductions and input VAT claims are disallowed for lack of substantiation, SARS can raise assessments on estimate, understatement penalties become more likely, and failure to retain records is an offence under the Tax Administration Act.
Do I need to keep paper copies? No. Electronic records are acceptable provided they meet the accessibility and integrity requirements. Back them up — a stolen laptop is not a defence to a SARS request for documents.
Records that are there when you need them
The retention period is the easy part. What matters is whether you can produce a specific invoice from four years ago in two minutes — because that is the difference between a verification being an inconvenience and being a crisis.
Smartbook processes and files source documents monthly against the transactions they relate to, so the archive builds itself as the year goes rather than being assembled under pressure.
Last reviewed: 26 July 2026. Written by the Smartbook team — SAIPA and SAICA accredited, SARS registered tax practitioners. General guidance, not advice on your circumstances.
Primary sources: SARS — Obligations of a VAT vendor · SARS — Short Guide to the Tax Administration Act · Companies Act 71 of 2008 · Department of Employment and Labour — BCEA