Why Is It Important to Know Invoice Retention Periods?
Invoices are the most common type of business documentation. Every company issues and receives them — daily, weekly, monthly. But how long must you keep them? The answer depends on whether you're a VAT payer, what sector you're in, and what type of invoice it is.
Getting the period wrong can cost you — either because you prematurely destroyed a document needed for a tax audit, or because you're storing tons of unnecessary paper.
Retention Periods by Law
Accounting Law (Art. 9)
According to the Accounting Law ("Official Gazette RS", No. 73/2019), accounting documents (including invoices) must be kept for at least 5 years from the last day of the business year they relate to.
VAT Law
For VAT payers, invoices must be kept for 10 years from the end of the calendar year they relate to. This is longer than the general accounting period.
Electronic Invoicing Law
Electronic invoices issued through the SEF system are kept:
- 10 years for VAT payers
- 5 years for entities not in the VAT system
The SEF system itself stores invoices in a central registry, but this doesn't relieve the company of its obligation to maintain its own records.
Retention Period Overview by Invoice Type
| Invoice Type | Retention Period | Legal Basis |
|---|---|---|
| Outgoing invoices (VAT payer) | 10 years | VAT Law |
| Incoming invoices (VAT payer) | 10 years | VAT Law |
| Invoices (non-VAT payer) | 5 years | Accounting Law |
| E-invoices via SEF (VAT) | 10 years | E-invoicing Law |
| E-invoices via SEF (non-VAT) | 5 years | E-invoicing Law |
| Advance invoices | 10 years | VAT Law |
| Credit/debit notes | 10 years | VAT Law |
Paper or Electronic Invoice — Does the Period Differ?
No. The retention period is the same regardless of format. Paper invoice, PDF, XML — all are kept for the same period. The difference is in the storage method:
- Paper invoices: physical storage in binders/boxes
- Electronic invoices: digital storage with ensured integrity and authenticity
If you've digitized (scanned) paper invoices, originals must still be kept unless you meet the conditions for replacing originals with digital copies.
Practical Tips for Invoice Storage
- Organize by year and type — incoming and outgoing separately, by year
- Use a DMS system for electronic invoices — automatic categorization and search
- Link invoices to the archive book — each invoice category must be recorded
- Don't wait until year-end — organize monthly or quarterly
- Back up electronic invoices — at least 2 copies in different locations
What Happens After the Period Expires?
When invoice retention expires, you cannot simply delete them. You must:
- Prepare a list of invoices for destruction
- Submit a request to the competent archive for approval
- Wait for written approval
- Destroy the documentation and create a record
Conclusion
The invoice retention period in Serbia is 5 or 10 years, depending on VAT status. Don't let this confuse you — the key is a systematic approach and the right tool.
Arhivix automatically tracks retention periods for every invoice, notifies you when they expire, and helps you conduct the legal destruction procedure. Everything in one place.
