Document Archiving: How Long to Keep Records and How to Do It Right
Do you have a binder full of invoices from 2019 sitting at home, wondering whether you can finally throw them out? Or perhaps you've just realized you shredded documents two years ago that were supposed to stay in your archive? Archiving accounting documents is one of those obligations many business owners underestimate — until the tax authority comes knocking with a request for documents that no longer exist.
In this article, we provide a clear overview of retention periods for different types of documents, how obligations differ for OSVČ keeping tax records versus full accounting entities, what options exist for digital archiving, and what penalties you face for non-compliance. We draw on Act No. 563/1991 Coll., on Accounting, Act No. 586/1992 Coll., on Income Taxes, Act No. 235/2004 Coll., on VAT, and other relevant legislation.
Why Document Archiving Matters So Much
Archiving documents isn't just tedious red tape. It's your protection. If the tax authority launches a tax audit — and it has the right to do so several years back — you'll need to produce complete documentation for the period under review. Without documents, you can't prove your claimed expenses were legitimate, and the tax authority can assess your tax liability based on its own estimate.
Beyond that, there are situations where you'll need old documents for other reasons:
- Pension proceedings — the Czech Social Security Administration (ČSSZ) may require proof of income when calculating your pension
- Legal disputes — invoices and contracts serve as evidence in commercial litigation
- Loan or mortgage applications — banks require tax returns from the past several years
- Health insurance audits — verification that advance payments were calculated correctly
The Golden Rule of Archiving
The retention period starts running from the end of the period the document relates to — not from the date the document was issued. For example, an invoice from December 2025 is archived from the end of 2025 (i.e., from 1 January 2026), not from the date it was issued.
If a single document is subject to multiple retention periods under different laws, the longest one always applies.
Retention Period Overview by Document Type
Retention periods vary depending on the type of document and the legislation that gives rise to the obligation. The following overview covers the most important categories.
Accounting Documents (Act No. 563/1991 Coll.)
These periods apply to accounting entities — meaning OSVČ who keep double-entry bookkeeping (e.g., because their turnover exceeds CZK 25 million), as well as legal entities (s.r.o., a.s., etc.).
📊Retention Periods Under the Accounting Act
Tax Record Documents (Act No. 586/1992 Coll.)
OSVČ who keep tax records (rather than full double-entry bookkeeping) are governed primarily by the Income Tax Act and the Tax Code.
Archiving Tax Records
Under Section 7b(5) of the Income Tax Act, a taxpayer is required to retain tax records for all tax periods for which the period for tax assessment has not yet expired.
The basic period for tax assessment is 3 years from the end of the deadline for filing a tax return (Section 148 of the Tax Code). In practice, this means archiving for at least 3 + 1 years — roughly 4 years from the end of the tax period.
However, the period is extended in the following cases:
- Filing an amended tax return → the period starts running again
- Commencement of a tax audit → the period is extended
- Reporting a tax loss → the period is extended for as long as the loss can be applied (5 years + 3 years)
- Claiming a research and development deduction → the period is extended
In practice, we therefore recommend retaining tax records for at least 5–7 years, and in some cases even longer.
VAT Documents (Act No. 235/2004 Coll.)
📊Retention Periods for VAT Documents
VAT Documents: 10 Years, No Exceptions
Be careful — the 10-year retention period for VAT tax documents is absolute and cannot be shortened. If you are a VAT payer, you must retain invoices (both issued and received) for 10 years from the end of the tax period in which the supply took place. This is significantly longer than the five-year period for accounting documents.
Payroll and Personnel Documents
If you have employees, special archiving obligations apply to you.
📊Retention Periods for Payroll Documents
45 Years: The Longest Retention Period
Payroll records and documents needed for pension insurance purposes must be kept for 45 calendar years following the year they relate to. This is by far the longest retention period in Czech law. If you have — or have ever had — employees, never destroy these documents prematurely.
Other Documents and Contracts
📊Retention Periods for Other Documents
Summary Overview: How Long to Keep What
For easy reference, here is a summary table with recommended retention periods for the most common documents for OSVČ.
Practical Overview: Minimum Recommended Retention Periods
| Document | Legal Minimum | Recommendation | |--------|----------------|------------| | Issued invoices (non-VAT payer) | 3–5 years | 7 years | | Issued invoices (VAT payer) | 10 years | 10 years | | Received invoices (non-VAT payer) | 3–5 years | 7 years | | Received invoices (VAT payer) | 10 years | 10 years | | Bank statements | 5 years | 7 years | | Cash receipts | 5 years | 7 years | | Income and expenditure ledger | 3–5 years | 7 years | | Tax return (copy) | 3–5 years | 10 years | | Reports for ČSSZ and health insurer | 10 years | 10 years | | Asset and depreciation records | 5 years after disposal | 10 years after disposal | | Payroll documents | 45 years | 45 years | | Commercial contracts | 4 years after termination | 10 years |
Why do we recommend longer periods? Because the tax assessment period can be extended (due to a tax audit, an amended return, or a tax loss). Keeping documents longer protects you from a situation where the tax authority requests records you have already destroyed.
Digital vs. Physical Archiving
These days, there's no need to store binders of paper documents in offices or storage rooms. The law allows documents to be archived in electronic form — but certain conditions must be met.
Rules for Digital Archiving
Conditions for Electronic Archiving
The Accounting Act (Sections 33 and 33a) permits accounting records to be retained in electronic (technical) form, provided the following conditions are met:
- Authenticity of origin — it must be possible to verify who the document came from
- Integrity of content — the content of the document must not be altered after storage
- Legibility — the document must remain legible throughout the entire retention period
- Accessibility — documents must be available for inspection by the tax authority at any time
These conditions can be met in various ways: through an electronic signature, a qualified electronic seal, a system of internal controls, or simply by storing documents in a secure system with an audit trail.
How to Properly Digitise Paper Documents
If you want to scan paper documents and dispose of the originals, follow these steps:
📋Steps for Digitising Paper Documents
Comparing Digital and Physical Archiving
📊Digital vs. Physical Archiving
Thermal Receipts: Digitise Them as Soon as Possible
Receipts printed on thermal paper (most till receipts) gradually fade and become illegible — sometimes within just 1–2 years. If you need to archive such a receipt, scan or photograph it as soon as you receive it. A faded receipt will not be accepted by the tax authority.
A Practical Guide: Setting Up Your Archiving System
A well-organised archiving system will save you hours of work and unnecessary stress. Here's the recommended approach.
For Paper Documents
- Get binders labelled by year — one binder per year, or separate binders for income and expenditure documents
- File in chronological order — arrange documents by date, oldest first
- Number sequentially — write a sequential number on each document that matches the entry in your records
- Separate document types — use dividers for issued invoices, received invoices, cash receipts, and bank statements
- Store in a safe location — dry, dark environment protected from fire and moisture
For Electronic Documents
Create a clear folder structure:
Archive/
├── 2026/
│ ├── 01-January/
│ │ ├── Invoices-issued/
│ │ ├── Invoices-received/
│ │ ├── Cash-receipts/
│ │ └── Bank-statements/
│ ├── 02-February/
│ │ └── ...
│ ├── Tax-returns/
│ ├── CSSZ-health-insurer-reports/
│ └── Contracts/
├── 2025/
│ └── ...
What Happens if You Don't Comply with Retention Periods
Failing to comply with retention periods is a punishable offence that can lead to real penalties.
Penalties from the Tax Authority
If you cannot produce the required documents during a tax audit:
- The tax authority may disallow your claimed expenses — leading to an additional tax assessment
- The additional tax will accrue late payment interest (Czech National Bank repo rate + 8 percentage points per annum)
- A fine of up to CZK 500,000 can be imposed for failure to meet a non-monetary obligation (Section 247a of the Tax Code)
Penalties Under the Accounting Act
Accounting entities that breach archiving obligations face a fine of up to 3% of the value of their assets (Section 37 of the Accounting Act). For OSVČ with modest assets this may not be an astronomical sum, but combined with a tax reassessment it can represent a significant financial blow.
Example: The Financial Impact of Missing Documents
Scenario: An OSVČ — a tradesperson — undergoes a tax audit in 2026 covering the 2023 tax year. They are unable to produce expense documents totalling CZK 180,000.
Consequences: | Item | Amount | |---------|--------| | Disallowed expenses | CZK 180,000 | | Additional tax assessed (15%) | CZK 27,000 | | Penalty: 20% of additional tax | CZK 5,400 | | Late payment interest (approx. 2.5 years, rate 15.75% p.a.) | approx. CZK 10,630 | | Total impact | approx. CZK 43,030 |
And that doesn't include any potential additional social and health insurance contributions based on the higher tax base.
The lesson: Archiving documents for a few hundred crowns a year (a binder, cloud storage) can save you from five-figure penalties.
When and How to Safely Destroy Documents
Once the retention period has expired, you are entitled to destroy the documents. But be careful — destruction must be carried out properly.
Before Shredding, Check the Following
📋Pre-Shredding Checklist
Methods of Destruction
- Paper documents — a cross-cut shredder or a professional shredding service. Do not put them in regular paper recycling, as personal data protection requires proper disposal.
- Electronic documents — permanent deletion from all storage locations, including backups. For sensitive data, use secure erasure (data overwriting).
Specific Rules for VAT Payers
If you are a VAT payer, stricter archiving rules apply to you. The VAT Act (Sections 35 and 35a) requires VAT payers and identified persons to retain tax documents for 10 years from the end of the tax period in which the supply took place.
This means that even a routine invoice for office supplies that includes VAT must be archived for 10 years — even though the Accounting Act would only require 5 years.
VAT Payers: Always 10 Years
If you are a VAT payer, make life simple for yourself and archive all tax documents for 10 years. That way you don't have to work out which documents are subject to the five-year period and which to the ten-year period — and you eliminate the risk of premature destruction.
Archiving in the Digital Age: Electronic Documents
More and more documents are created in electronic form from the outset — invoices sent by email, electronic bank statements, online payment confirmations. The same retention periods apply to these as to paper documents.
Electronic Invoices
An electronic invoice (sent by email as a PDF) is a fully valid document. When archiving it:
- Save it in its original format (PDF) without altering the content
- Keep the email it was delivered in as well (this proves the date of receipt)
- Back it up in multiple locations
Bank Statements
Most banks allow you to download electronic statements via online banking. However, be aware that banks are not required to retain them for more than 5–10 years. We recommend downloading your statements and storing them in your own archive.
Documents from Online Services
If you purchase online services (hosting, software, advertising), save the invoices as soon as you receive them. A provider may close your account or cease to exist, leaving you with no way to retrieve the documents.
Frequently Asked Questions (FAQ)
Do I need to archive documents for non-deductible expenses?
If you are not recording an expense as a tax-deductible item (i.e., it is not included in your tax base), there is no direct tax obligation to archive it. That said, we recommend retaining these documents anyway — they may serve as proof of the origin of funds, account transactions, or in case the tax nature of the expense is later reassessed.
How long should I archive documents if I've reported a tax loss?
If you reported a tax loss, the tax assessment period is extended. A loss can be applied over the following 5 tax periods, and the assessment period for the year in which the loss arose runs until the end of the assessment period for the last year in which the loss could be applied. In practice, this can mean archiving for up to 10 years from the end of the year in which the loss occurred.
Can I throw away paper originals after digitising them?
Yes, provided the digital copy satisfies the conditions of authenticity of origin, integrity of content, and legibility. The Accounting Act explicitly permits the conversion of accounting records from one form to another (Section 33). To be safe, we recommend keeping the paper originals for at least one year after digitisation and verifying the quality of the scans.
Do retention periods apply to OSVČ on the flat-rate tax scheme?
Yes. Even OSVČ on the flat-rate tax (paušální daň) scheme must keep income records and retain them for as long as the tax assessment period has not expired. If you were previously a VAT payer, the VAT document retention periods (10 years) continue to run.
What happens to archiving obligations when I close my business?
Closing your business does not end your archiving obligations. You must continue to retain documents for the remainder of the applicable retention period. If you cease trading in 2026, invoices from 2024 must still be kept in accordance with the relevant periods. In the event of a sole trader's death, the archiving obligation passes to their heirs.
Do I need to archive business-related emails?
The law does not directly require you to archive business correspondence. However, emails can serve as supporting evidence — for example, when proving a business relationship, a service order, or a complaint. We recommend archiving emails related to significant contracts and commercial agreements.
Practical Tips for Hassle-Free Archiving
📋8 Tips for Effective Document Archiving
Archive Documents Automatically with DokladBot
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Useful Links to Official Sources
- Czech Financial Administration — information on tax obligations and audits
- Act No. 563/1991 Coll., on Accounting — retention periods for accounting entities (Sections 31, 32, 33)
- Act No. 586/1992 Coll., on Income Taxes — tax record retention obligations (Section 7b)
- Act No. 235/2004 Coll., on VAT — retention of tax documents (Sections 35, 35a)
- ČSSZ — Information for OSVČ — social insurance obligations
- Act No. 280/2009 Coll., Tax Code — tax assessment periods (Section 148)
Disclaimer: This article is for informational purposes only and does not constitute professional tax advice. The information reflects legislation in force as of February 2026. Retention periods may vary depending on specific circumstances (tax audits, tax losses, etc.). For guidance on your specific situation, we recommend consulting a qualified tax adviser.
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