The short answer: longer than you think
Most small business owners assume they can throw out receipts once their tax return is filed. In almost every country, that is too early. Tax authorities can usually look back at returns for several years, and if they do, you need the documents that support every figure you reported. The exact period depends on where you are, what kind of business you run and sometimes on what happened with your return. A safe habit is to keep business records for at least as long as your country's legal minimum, and to treat anything less than five years as risky until you have checked. Rules differ by country, so confirm the period that applies to you with your tax office or accountant, then set up a system that keeps everything for that long without effort.
What the rules look like in a few countries
A few examples show how much the rules vary. In the US, the IRS says to keep records that support your return until the period of limitations for that return runs out, which is generally three years after filing, with longer periods in some situations, such as when income was significantly underreported. In the UK, sole traders are generally told to keep records for at least five years after the 31 January filing deadline for the tax year they relate to, and limited companies usually for six years from the end of the accounting period. Many other European countries require business records to be kept for somewhere between five and ten years, and some set different periods for different types of documents. These are general rules, not advice for your situation, so check locally.
Which records you need to keep
Receipts are only one part of it. The records that support your books typically include every sales invoice you issued, including credit notes and cancelled invoices; purchase receipts and supplier invoices for expenses you claimed; bank and card statements for business accounts; VAT records, if you are registered; payroll records, such as contracts, pay stubs and filings, if you have employees; contracts and agreements with clients and suppliers; records of assets you bought and sold, such as equipment and vehicles; and logs that support specific deductions, like a mileage log or home office calculation. If a number appears on your tax return or VAT return, there should be a document behind it. Our guide on tracking business expenses covers how to capture these as you go.
Are digital copies enough?
In many countries, yes. Tax authorities increasingly accept scanned or photographed receipts and digital invoices, provided the copy is complete, legible, and shows everything the original did: date, supplier, amount, VAT if any, and what was bought. Some countries add conditions, such as keeping files in a format that cannot be changed easily, storing them in a way that lets you produce them quickly when asked, or keeping data within certain regions. A few still expect originals for particular documents. Before you shred a box of paper, check what your tax authority says about digital record keeping. If digital copies are accepted, the practical advice is simple: photograph each receipt as soon as you get it, make sure the photo is sharp and complete, and store it next to the expense it supports.
Thermal paper fades
Many shop and restaurant receipts are printed on thermal paper, and the ink fades. Left in a drawer or a warm car, a receipt can become unreadable within months, long before any retention period ends. A receipt you cannot read does not support a deduction. This is one of the strongest reasons to go digital even if your country does not require it: a clear photo taken on the day is more durable than the original. Take the photo flat, in good light, with all four edges visible, and check that the total, the date and the supplier name are legible before you throw the paper away, if your rules allow that. For high-value purchases, such as a laptop or a piece of equipment, consider keeping both the photo and the original.
A simple filing system that works
The best system is the one that runs without you thinking about it. Keep one place for all business records rather than spreading them across email, a phone gallery and a desk drawer. Attach each receipt to the expense it belongs to, so you never have to match them up later. Name or tag records by date and supplier. Keep sales invoices in your invoicing tool, numbered in sequence, as described in our guide to invoice numbering. Download bank statements every month as PDFs, since some banks only keep online statements for a limited time. Back up everything at least once a month to a second location. And once a year, export a full copy of your books and records for that year and store it safely.
When to keep records longer
Some records need to outlive the normal retention period. Documents relating to assets, such as equipment, vehicles or property, are often needed until several years after you sell or dispose of the asset, because they support depreciation and any gain or loss on sale. If you carry a tax loss forward to set against future profits, keep the records behind it until the loss is used up and that later year's period has passed. If your tax authority opens an enquiry or audit, keep everything until it is fully closed, even if the normal deadline passes in the meantime. Records may also be needed for reasons other than tax: a lender, insurer, buyer of your business or a legal dispute may ask for documents older than the tax rules require.
What to do at the end of the period
When a year's records reach the end of their retention period, you can usually dispose of them, but do it carefully. Shred paper documents that contain personal or financial information rather than putting them in the recycling. Delete digital files securely, and remember that backups may hold copies too. Before you delete anything, double-check that none of the exceptions above apply to that year, especially open audits, assets you still own or losses carried forward. Some people simply keep digital records indefinitely, because storage is cheap and a scanned receipt takes very little space. That is a reasonable choice, but be aware that privacy rules in some countries limit how long you may keep personal data, such as employee records, after it is no longer needed.
Keep receipts without the shoebox
The easiest way to keep receipts for years is to capture them on the day you get them. In Kelvo Books, you photograph a receipt and the amount, date and supplier are read for you, then stored alongside the expense. On Pro, you also get a personal @kelvo.app email address: forward digital receipts to it and they are logged automatically, or reply with something like "paid $800 from Acme" to record a payment in one line. Every invoice, expense and receipt stays in one place, and a CSV or ledger export gives you a full yearly archive for your files or your accountant. The free plan includes 10 invoices a month, unlimited clients and expenses, and the P&L. Pro is €7 a month. Start at books.kelvo.app.