Every entrepreneur has wondered how long invoices must be kept.We are talking about a responsibility for any company or business, as knowing the deadlines and regulations is vital to avoid penalties and problems. However, the answers are complex and varied due to the diversity of laws. In this article, we tell you how long you should keep invoices according to each regulation, what happens if you don’t have the one requested, and how e-invoicing, with solutions like easyap, facilitate legal compliance and optimize your document management.
How long must invoices be kept according to Spanish legislation?
The retention of invoices in Spain is regulated by several laws. Each has a different purpose and storage period. Therefore, below, we present the different deadlines established by all current legislation.
1. Commercial Code: 6 years
Article 30 of the Commercial Codestipulates that companies must keep books, correspondence, documentation, and supporting documents for a minimum period of six years. This applies to all accounting records, including issued and received invoices. Thus, any business can justify its operations during that time in an inspection.2. Money Laundering Act: 10 years
For its part,
Article 25 of Law 10/2010on the prevention of money laundering and terrorist financing requires the retention of documentation for ten years. This law is only applicable to companies in the financial sector or those with transactions involving a high risk of money laundering.3. General Data Protection Regulation (GDPR)
The
GDPRdoes not establish a minimum retention period for invoices, but rather a maximum period. This means that data should only be retained as long as necessary for the purposes for which it was collected. 4. Occupational Risk Prevention Law: 5 years
According to the
Según el article 23 of the Occupational Risk Prevention Law, documents regarding occupational risk prevention, including invoices related to preventive activities, must be retained for five years.
5. General Tax Law: 4 or 10 years
The article 66 of the General Tax Law sets a period of four years for retaining invoices for tax purposes. However, article 66.bis allows the Administration to initiate procedures for outstanding tax bases to be offset or deductions pending application for ten years. Therefore, in certain cases, invoices must be retained for a longer period.
6. Law on Infractions and Sanctions in the Social Order: 3, 4 and 5 years
According to article 4 of the Law on Infractions and Sanctions in the Social Order, the period varies between three, four and five years, depending on the infraction or the nature of the information. This law is fundamental in labor and social security matters.
7. Audit Law: 5 years
Finally, article 30 of the Audit Law establishes that audit documentation must be retained for a minimum period of five years. This includes invoices related to audits and other supporting documents necessary for the reports issued.
For all these reasons, and since the Commercial Code sets the period at six years, retain documentation for at least six years (for tax purposes, it will be four). The exception will be for companies that have outstanding negative tax bases to offset or deductions pending application. In that case, the period will be ten years.
In any case, we summarize all this information in this table:
What happens if I don’t have a requested invoice?
This information is so important because if you do not present an invoice when requested, you may face legal consequences and financial penalties. These, depending on the nature of the request, can be:
- Tax inspection. In the fiscal sphere, if the Tax Agency requests an invoice that you do not have, you could face administrative penalties and the denial of certain deductions or benefits.
- Accounting and audit issues. The lack of invoices can also cause problems in audits. How? By compromising the quality of your financial information and affecting your company’s transparency.
- Legal risks. In cases of litigation, not having sufficient documentation could harm the company’s legal defense. That is, in disputes and lawsuits with suppliers, clients, or employees.
To avoid these situations, it is best to have a good storage and document management system that offers you full availability of invoices in the shortest possible time.
The role of electronic invoicing in invoice preservation: advantages and disadvantages
Specifically, electronic invoicing plays a very prominent role in invoice preservation. In the current context, where regulations are rigorous and demanding, electronic solutions provide efficiency and security.
According to the Create and Grow Law, companies must ensure that electronic invoices are available to clients and suppliers. This, among other things, greatly facilitates regulatory compliance.
Likewise, and apart from legal requirements, online invoicing offers advantages such as:
- Accessibility and availability: electronic invoicing facilitates access to information anytime, anywhere. Thus, they are always available for potential inspections or audits.
- Reduction of errors and penalties:by automating archiving and retention, the risk of losing your invoices is much lower. Therefore, it’s easier to meet deadlines and, consequently, you minimize the risk of fines.
- Information Security:solutions like ours feature advanced security measures, such as data encryption. This ensures the integrity and confidentiality of your stored information and helps you comply with both the Commercial Code and the GDPR.
Is easyap an effective solution for retaining your digital invoices?
At this point, we must highlight easyap’s functionalities.A tailored solution to help you efficiently meet your obligations. With our technology, any financial director can optimize invoice management and ensure they are available at all times and in the appropriate format.
Key features of easyap’s software
- Automation of the retention process. The software we offer allows you to automate the storage of your invoices. Furthermore, it helps you organize them correctly, and in turn, you will have them available when you need them and for the period mandated by law according to your specific case.
- Comprehensive regulatory compliance. Our solution is designed to comply with all current legislation in Spain regarding invoice retention.
- Secure cloud access. Invoices stored in easyap are kept in a secure cloud environment.
As you may have seen, the invoice retention period is not as simple a matter as it might seem. In fact, in Spain it ranges from six years under the Commercial Code to ten years in specific cases, or up to the flexible periods of the GDPR. This is why good management and understanding the timelines are so important.
Fortunately, electronic invoicing and solutions like those we design at easyap offer you the perfect technology with which to meet those deadlines efficiently. The automation and digitalization of the process facilitate the preservation of all kinds of documents and, at the same time, provide you with peace of mind and security.Contact us to always be prepared for any eventuality.
