Administratieplicht
Obligation to Keep Records
The record-keeping obligation is the statutory duty of entrepreneurs and legal entities to maintain complete and accurate records and to retain them for a legally prescribed period.
The duty to maintain proper records requires entrepreneurs, companies and certain other legal entities to keep adequate books and records. This includes, inter alia, recording all financial transactions, retaining invoices, contracts and other relevant documents, and being able to produce these records upon inspection.
This duty is particularly relevant in tax law, where the Dutch Tax Authority oversees compliance. It also plays a role in civil law and in bankruptcy proceedings, as inadequate records may give rise to liability or evidentiary difficulties.
In practice, the duty to maintain proper records is strictly enforced. Entrepreneurs who fail to comply risk fines, reversal of the burden of proof or personal liability of directors.
“Because the entrepreneur had failed to comply with his record-keeping obligations, the Tax Authority imposed a substantial penalty for being unable to produce the required documents.”
Related terms
Need legal advice?
Schedule a free consultation with one of our specialists