Meanings of Retention Periods Part II

In the following we have put together some examples for the retention requirements of various documents. Including only those that occur most frequently. But the list is not exhaustive:

document	Years
Accounting documents	10
Letters of credit	6
Offers that led to the order	6
Appendix to the annual financial statements (according to Section 264 of the German Commercial Code)	10
Fixed asset books and card indexes	10
Work instructions	10
Outgoing invoices	10
Bank receipts	10
Accounting receipts	10
User manuals for computerized bookkeeping	10
Operating cost accounting	10
Tax audit reports (external tax audit)	6
Evaluation documents	10
Hospitality receipts	10
Balance sheets (including opening balance sheet)	10
Accounting documents	10
Incoming invoices plus any correction documents	10
Export documents	10
Travel expenses documents	10
Payrolls	10
Business letters (received and sent)	6
Profit and Loss Account	10
Credits (to invoices)	10
Commercial letters (except invoices or credit notes)	6
Trading books	10
Inventories (according to § 240 HGB)	10
Annual financial statements with explanations	10
Journals for general ledger or current account	10
Calculation including documents (if tax-relevant)	10
Cash books	10
Chart of accounts and changes to the chart of accounts	10
Bank statements	10
Wage receipts	10
Payrolls for interim, final and special payments	6
Dunning notices and outgoing reminders	6
Sub-ledgers	10
Price lists, general	6
Price lists as booking documents	10
Auditor’s reports	10
Receipts	10
Invoices to entrepreneurs	10
Travel Expenses	10
G / L accounts	10
Check and bill of exchange documents, general	6
Check and bill of exchange documents, general	6
Check and bill of exchange documents as accounting documents	10
Correspondence	6
Donation receipts, provided booking documents	10
Tax returns and tax assessments	10
System manuals	10
Telephone cost statements as evidence for accounting	10
Liabilities (list)	10
Sales books	10
List of assets	10
Insurance policies for ongoing insurance	10
Insurance policies after the insurance expires	6
Contracts if they serve as accounting documents or are tax-relevant	10
Incoming and outgoing goods books	10
Change	10
Money orders	10

Retention periods of two years

Retention periods of two years apply to non-entrepreneurs and primarily concern invoices and payment receipts. In connection with the law to combat illegal employment, private individuals are obliged to comply with retention periods. These retention periods primarily affect owners of residential property in connection with invoices relating to property services. Invoices for various craft services, but also for planning services, maintenance work, gardening or cleaning services must be kept for two years. Although there is no retention period of five years for private individuals, invoices issued for services on the property should be retained for five years. This is important to prove if the property owner refers to the service provider’s warranty obligation.

Retention periods of six years

According to PHOTIONARY.COM, retention periods of six years apply to commercial and business letters that a company receives, but also to commercial and business letters that a company sends. The company must keep copies of these documents. Furthermore, documents that are important for taxation must be kept for six years. Wage accounts must also be kept for six years.

Retention periods of ten years

Retention periods of ten years apply to invoices and other bookkeeping documents with a book function, such as B accounting documents. The shorter periods only apply if shorter retention periods are permitted in other tax laws. Shorter retention periods, which are stipulated in non-tax laws, do not apply to the tax retention obligation. It should be noted that the invoices must be legible for the entire retention period. In this case, periods of ten years are relevant for the tax retention requirement. Retention periods of ten years apply primarily to

Books, trading books and other records
Inventories
Annual accounts
Individual financial statements
Opening balances
Consolidated Financial Statements
Situation reports
Bills
Group management reports
Work instructions and organizational documents for understanding the books
Accounting documents
Documents for customs declarations
Duplicates of outgoing invoices
Incoming invoices

Unlimited retention periods

In contrast to invoices or accounting documents, which have a limited retention period, unlimited retention periods are referred to as permanent values. Such unlimited storage applies in public administration to documents mostly marked with a “D”. These are primarily files on proceedings before the Federal Constitutional Court, property documents, construction plans for important buildings, legal documents or civil status records. The longest retention period in the economy is ten years. From a commercial and tax law perspective, there are no longer retention periods in business, but various documents such as patents should be used, Construction plans, court rulings, property documents, shareholder agreements and personnel files are kept indefinitely.

Retention periods for various documents

Accounting documents

Various documents fall under the category of accounting records. Invoices count as accounting records, but receipts, delivery notes, bank statements, utility bills, booking instructions, postage books, cash reports, process files, order slips and payrolls are also considered accounting records. In short, accounting records are all documents relating to the individual business transactions. The following applies: accounting records with capital-forming benefits have a ten-year retention period. This is due to the Tax Amendment Act of 1998, the revision of which extended the retention periods for accounting documents from six to ten years.

Bank and cash receipts

Bank and cash receipts are also accounting receipts. Not all bank and cash receipts need to be retained if the purpose of retention is otherwise secured. Such receipts that do not need to be kept are receipts, cash register slips, or receipts. If end-of-day total receipts are kept instead of cash register strips, this is sufficient. The completeness must be guaranteed, information on the name of the business, end-of-day total and date must be available. Here, too, it should be noted that these accounting documents must be kept for ten years.