Core rule: rule 23 requires VAT records to be retained for six years. These include the prescribed transaction records and supporting documents. Maintain readable, retrievable records even where invoices and returns are electronic.
Keep sales and purchase records, tax invoices, import/export evidence, credit/debit notes, stock details, tax deposits and filed returns. Preserve relevant contracts and transport or branch-transfer documents where they support the transaction.
Example: a return claims NPR 13,000 input VAT. The acknowledgement proves submission, not that the purchase qualifies. The invoice, actual receipt or service evidence and taxable-use records support the claim.
Back up electronic files and reconcile them with the accounts. Do not destroy documents still needed for an open assessment, dispute or another longer legal retention requirement merely because the ordinary VAT period has elapsed.