How Long Do You Have to Keep Invoices in Canada?

Six years - but not six years from the invoice date. The clock runs from the end of the tax year, electronic originals have to stay electronically readable even if you printed them, and a cloud server outside Canada is not a record kept in Canada.

The 60-second version

Six years, and the clock does not start on the invoice date. It starts at the end of the tax year the record relates to [2][4]. A January 2026 invoice for a calendar-year business is kept until the end of 2032, not January 2032.
You are running two retention clocks, not one. The Income Tax Act anchors on the last taxation year [2]; the Excise Tax Act anchors on the year the record relates to for GST/HST purposes [1].
If a record was born electronic, it must stay electronically readable for the whole period, even if you printed it [2][5]. A PDF invoice filed as a paper printout is not compliance.
Records held on a server outside Canada and reached over the internet are not records kept in Canada [6]. Your accounting SaaS may have quietly created this problem for you.
Never filed the return? The six years never started running [2]. Filed an objection or appeal? Destruction is frozen until it is finally disposed of [1][2].
Some records are kept indefinitely, and destroying anything early without written permission can be prosecuted [4].

How long do you have to keep invoices in Canada?

Six years from the end of the last tax year the record relates to. That is the general rule, and it comes from two statutes that say nearly the same thing in slightly different words.

The Income Tax Act, subsection 230(4), requires you to retain records and books of account "together with every account and voucher necessary to verify the information contained therein, until the expiration of six years from the end of the last taxation year to which the records and books of account relate" [2].

The Excise Tax Act, subsection 286(3), puts it this way: "Every person required under this section to keep records shall retain them until the expiration of six years after the end of the year to which they relate or for such other period as may be prescribed" [1].

The single most common mistake is measuring six years from the date on the invoice. That is not what either provision says. The unit is the tax year, and the tax year is the fiscal period for a corporation and the calendar year for an individual [4].

Worked through, for a calendar-year business:

An invoice dated 3 January 2026 relates to the 2026 tax year.
The 2026 tax year ends 31 December 2026.
Six years from that end is 31 December 2032.
You have carried that January invoice for just under seven calendar years.

For a corporation with an off-calendar fiscal period, run the same arithmetic from your own year end. If your year ends 30 June, an invoice issued in July 2026 falls into the year ending 30 June 2027 and is retained until 30 June 2033 - almost seven years from issue.

The practical consequence is that any purge rule expressed in months from the document date will delete records early. If your system has a retention setting, it needs to know your fiscal year end, not just the invoice date.

Why there are two clocks and not one

Income tax and GST/HST are administered under separate Acts with separate record-keeping sections. In the ordinary case they land on the same date and nobody notices. In the awkward cases they do not.

The CRA's own guidance flags the GST/HST variant explicitly: if you have not filed a GST/HST return for a reporting period that ended more than six years ago, you are still required to file it and to retain the records supporting the amounts reported. The six-year period for GST/HST records generally begins after the last year in which a record may be required for GST/HST reporting purposes [4].

A concrete case where the clocks diverge: you issue a tax adjustment note for GST/HST to a pension entity. The related records are kept for six years from the day you issued the note [4] - which may be years after the underlying transaction's tax year closed.

There is also a reason to keep sales invoices that has nothing to do with the retention section at all. Under subsection 169(4) of the Excise Tax Act you cannot claim an input tax credit unless, before filing the return, you obtained sufficient evidence containing the prescribed information [13]. That is a documentary condition on the claim, and if the supporting invoice cannot be produced on audit the credit can be denied regardless of how honest the purchase was. We went through exactly what has to appear on that document in what a compliant GST/HST invoice must show.

Electronic records must stay electronically readable

This is the requirement that catches the most small businesses, and it is one sentence long in each Act.

Every person required by this section to keep records who does so electronically shall retain them in an electronically readable format for the retention period referred to in subsection 230(4) [2].

The Excise Tax Act's subsection 286(3.1) is the mirror image [1]. The CRA states the consequence plainly: records and supporting documents originally produced in electronic format have to be kept in an electronic readable format even if you have paper printouts [5].

So the common practice of printing emailed PDF invoices, filing the paper, and letting the mailbox roll over is not compliance. The electronic original is the record. The printout is a copy of it.

"Electronically readable" has a defined meaning too. IC05-1R1 says the format must be one where the taxpayer can provide an accessible and useable copy: accessible means CRA auditors can process and analyse it on CRA equipment, and useable means it works with CRA software, in a non-proprietary, commonly used data interchange format [6]. Files retained in an encrypted or proprietary backup format must be restorable to that state later [6].

Two things follow that are worth acting on today:

A proprietary backup is not a record until it can be restored. If your only copy of 2021 is a vendor-specific archive from software you no longer license, you are one licensing decision away from an unreadable six-year record.
Exports beat screenshots. CSV, XML and PDF/A survive. A vendor's internal database format may not, and the obligation does not transfer to the vendor - IC05-1R1 is explicit that using a third party such as an accountant, an internet service provider or an application service provider does not relieve you of the responsibility [6].

Where the records have to live

Subsection 230(1) requires records to be kept at the person's place of business or residence in Canada, or at another place designated by the Minister [2]. The Excise Tax Act adds a language rule: unless otherwise authorized, a record shall be kept in Canada in English or in French [1].

Then comes the sentence that matters in a cloud-software world. From IC05-1R1:

Records kept outside Canada and accessed electronically from Canada are not considered to be records in Canada [6].

Being able to log in from Moncton and see your data does not make the data Canadian. If your accounting platform, invoicing tool or document store holds the only copy on servers abroad, the strict reading is that your records are not where the Act requires them to be.

The CRA does provide a path. You may write to your tax services office for written permission to keep records elsewhere; the permission will specify terms and conditions, and the records must still be made available in Canada on request in a format readable by CRA software, showing enough detail to support the returns filed [4][6]. Certain entities - registered charities, registered Canadian amateur athletic associations, municipalities, public bodies performing a function of government, and exempt housing corporations - will not be given that permission at all [4].

The pragmatic answer for most small businesses is not to apply for anything. It is to keep a complete, restorable copy in Canada: an export of the invoice set, on Canadian storage or on hardware you own, refreshed on a schedule. The circular even encourages off-site backups and recommends they be maintained at a location within Canada [6].

IC05-1R1 also aims a paragraph directly at internet businesses: those hosted on a server located outside Canada "should be cognisant of their responsibility to maintain their records within Canada," and have the same retention responsibilities as everyone else [6].

When six years is not six years

Several provisions extend the period, and each of them overrides the general rule rather than running alongside it.

You filed the return late, or not at all. Where a person has not filed a return as and when required, records relating to that year are retained until six years from the day the return is actually filed [2]. An unfiled year is a year whose retention clock has not started.
You objected or appealed. On serving a notice of objection or being party to an appeal, you must retain every record necessary for dealing with it until the objection or appeal and any further appeal is finally disposed of or the time to appeal has expired [1][2]. The CRA phrases the practical test as the latest of: the objection or appeal is resolved, the time for a further appeal has passed, and the six-year period has passed [4].
The Minister demanded it. By registered letter or personal service, the Minister may require you to retain records for a specified longer period [1][2].
The record is historical. Records concerning long-term acquisitions and disposals of property, the share registry, or other historical information that would affect the sale, liquidation or wind-up of the business are kept indefinitely [4].

That last one deserves emphasis, because it is the category most likely to be thrown out by an otherwise well-run purge. The purchase invoice for a building, a vehicle, or equipment is not a six-year document. It establishes cost base, and it stays relevant until long after the asset is gone.

What happens when the business ends

Winding up does not end the obligation; it changes its shape, and the rules differ by structure.

Dissolved corporation: two years after the date of dissolution, for all records and supporting documents verifying tax obligations and entitlements. That period is prescribed by section 5800 of the Income Tax Regulations, which sets the same two-year post-dissolution period for directors' and shareholders' minutes, the share ownership register, the general ledger and any special contracts needed to understand its entries [3][4].
Unincorporated business that ceases: six years from the end of the tax year in which it ended [4]. The general ledger and related contracts of a non-corporate business carry the same six-years-from-cessation period under Regulation 5800(1)(c) [3].
Amalgamation or merger: the new corporation generally keeps the records of each predecessor for six years from the end of the taxation year to which they relate [4].
Deceased taxpayer or trust: records may be destroyed once a clearance certificate has been issued and the property distributed [3][4].

Note the asymmetry: dissolving a corporation shortens the obligation to two years, while closing a sole proprietorship does not shorten it at all. If you incorporate a former proprietorship, the proprietorship's records still run their own six years.

Can you scan the paper and shred it?

Yes, subject to a standard. The CRA accepts records produced in paper and later converted to an accessible and readable electronic format [5]. If you image your paper books of account and supporting documents according to the Canadian General Standards Board standard CAN/CGSB-72.34, Electronic Records as Documentary Evidence, the images become the permanent records and the paper can be destroyed [5][7].

The image has to earn that status. The CRA's conditions are that it is an accurate reproduction intended to take the place of the paper document, that it gives the same information, and that significant details are not obscured by limitations in resolution, tonality or hue [5].

If your business cannot meet the standard when imaging, you have to keep the original documents [5]. And the CRA's own advice on the point is worth repeating verbatim: if you have any doubt about destroying any paper records, get legal advice first [5].

Destroying records before the six years are up

There is a legitimate route, and it is not "our storage unit flooded."

Both Acts permit early disposal only with the Minister's written permission - subsection 230(8) of the Income Tax Act and subsection 286(6) of the Excise Tax Act [1][2]. In practice that means filing Form T137, Request for Destruction of Records, or applying in writing to your tax services office [4][10].

Two limits on that permission are easy to miss. First, if you destroy paper or electronic records without it, the CRA states you may be prosecuted [4]. Second, the permission only covers records you are required to keep under legislation the CRA administers - it does not authorize destruction of records you must keep under other federal, provincial, territorial or municipal law [4]. Corporate records under your incorporating statute, employment records, and industry-specific obligations all sit outside the CRA's gift.

What failure actually costs

Under the Income Tax Act, failing to comply with any of sections 230 to 232 is an offence punishable on summary conviction by a fine of not less than $1,000 and not more than $25,000, or both that fine and imprisonment for up to 12 months [11]. The Excise Tax Act carries the same $1,000-to-$25,000 range and the same 12-month exposure, though its offence provision is aimed at failures to file and at non-compliance with a ministerial direction to keep specified records under subsection 286(2) rather than at subsection 286(1) directly [12].

Prosecution is the rare outcome. The ordinary one is quieter and more expensive: on audit, expenses you cannot document are disallowed and input tax credits you cannot support are denied. Inadequate records also hand the Minister the power under subsection 286(2) to dictate what records you keep from that point forward [1], and the same power exists under subsection 230(3) [2].

A retention policy that survives an audit

Written as rules you can hand to whoever does your bookkeeping:

Retain for six years after the fiscal year end the record falls in - not six years from the document date.
Keep electronic originals electronically, in an exportable, non-proprietary format. Printing is optional; keeping the file is not.
Hold a restorable copy in Canada, and verify a restore at least once a year. An untested backup is a hypothesis.
Never purge an unfiled year. The clock has not started.
Freeze everything on an objection or appeal, including records that would otherwise be past six years.
Flag asset and share records as permanent, outside the six-year rule entirely.
Get written permission before any early destruction, via Form T137.

The reason to write this down rather than carry it in your head is that retention failures are almost never decisions. They are defaults - a mailbox that expires messages after two years, a subscription that lapsed, a laptop that was traded in. The policy exists to make sure someone chose.

Frequently asked questions

How long do I have to keep invoices in Canada?

Six years from the end of the last tax year the invoice relates to, not six years from the invoice date. For a calendar-year business, a January 2026 invoice is retained until 31 December 2032. The rule comes from subsection 230(4) of the Income Tax Act and subsection 286(3) of the Excise Tax Act.

Can I throw out paper invoices after scanning them?

Yes, if the images meet the national standard CAN/CGSB-72.34. The CRA requires the image to be an accurate reproduction intended to replace the paper, giving the same information, with no significant detail obscured by resolution, tonality or hue. If you cannot meet the standard, keep the originals.

Is printing a PDF invoice enough to keep the record?

No. Records originally produced in electronic format must be retained in an electronically readable format for the full retention period even if you have paper printouts. Subsections 230(4.1) of the Income Tax Act and 286(3.1) of the Excise Tax Act both require it.

Can I store my accounting records in the cloud outside Canada?

Not by default. The CRA states that records kept outside Canada and accessed electronically from Canada are not considered records in Canada. You can apply in writing to your tax services office for permission to keep them elsewhere, or simply maintain a complete restorable copy on Canadian storage.

What if I never filed the return for that year?

The six-year clock has not started. Subsection 230(5) of the Income Tax Act requires records for a year with no return filed as and when required to be retained until six years from the day that return is actually filed. Unfiled years should never be included in a purge.

How long does a dissolved corporation keep its records?

Two years after the date of dissolution. Section 5800 of the Income Tax Regulations prescribes that period for directors' and shareholders' minutes, the share ownership register, the general ledger, related special contracts, and all other records of a dissolved corporation.

Which invoices do I have to keep forever?

Records concerning long-term acquisitions and disposals of property, the share registry, and other historical information affecting the sale, liquidation or wind-up of the business are kept indefinitely. In practice that means purchase invoices for buildings, vehicles and equipment establishing cost base.

Sources cited in this article

Excise Tax Act, s. 286 - Keeping books and records (Justice Laws)
https://laws-lois.justice.gc.ca/eng/acts/E-15/section-286.html
Income Tax Act, s. 230 - Records and books (Justice Laws)
https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-230.html
Income Tax Regulations, s. 5800 - Prescribed retention periods (Justice Laws)
https://laws-lois.justice.gc.ca/eng/regulations/C.R.C.,_c._945/section-5800.html
CRA - Where to keep your records, for how long, and how to request permission to destroy them early
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/keeping-records/where-keep-your-records-long-request-permission-destroy-them-early.html
CRA - Acceptable format, imaging paper documents and backing up electronic files
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/keeping-records/acceptable-format-imaging-paper-documents-backing-electronic-files.html
CRA Information Circular IC05-1R1 - Electronic Record Keeping
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/ic05-1/electronic-record-keeping.html
CRA Information Circular IC78-10R - Books and Records Retention/Destruction
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/ic78-10/books-records-retention-destruction.html
CRA - Keeping records (overview)
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/keeping-records.html
CRA - What records to keep, who has to keep them and why it is important
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/keeping-records/what-records-who-keep-them.html
CRA Form T137 - Request for Destruction of Records
https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t137.html
Income Tax Act, s. 238 - Offences and punishment (Justice Laws)
https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-238.html
Excise Tax Act, s. 326 - Offences (Justice Laws)
https://laws-lois.justice.gc.ca/eng/acts/E-15/section-326.html
Excise Tax Act, s. 169 - Input tax credits (Justice Laws)
https://laws-lois.justice.gc.ca/eng/acts/E-15/section-169.html

All sources verified August 24, 2026. Spotted a link that has moved? Email support@mapleinvoice.com and we will correct it.