AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Five years from the date the relevant return was submitted, or from the end of the tax period if no return is required, under section 29 of the Tax Administration Act. Records include invoices, bills of entry, bank statements and accounting records. Electronic records must normally be kept in South Africa; storing them abroad needs prior SARS authorisation.
Five years, measured from the right date
Under section 29 of the Tax Administration Act, as SARS's record retention policy (effective 27 November 2023) summarises it, records must be kept for five years from the date the return is submitted. If no return is required, the five years run from the end of the relevant tax period. That covers income received, capital gains and losses, and other taxable activity, including activity that would have been taxable but for a threshold or exemption.
The start date matters. A company with a February year end that submits its return the following December keeps records for that year until the December five years later, not until February.
What counts as a record
Section 29(1) requires records that let you comply with a tax Act, that a tax Act or a public notice specifically requires, and that let SARS confirm you have complied. SARS's VAT vendor page (updated 19 August 2026) names, for VAT purposes, tax invoices for supplies made, bills of entry for imported or exported goods, and proper accounting records, and says these documents form the audit trail SARS uses. In practice a business with Nigerian dealings should keep:
- Sales and purchase invoices, credit and debit notes, in whatever currency they were issued.
- Bank statements for every account, including foreign-currency and naira accounts.
- Contracts with Nigerian customers, suppliers and contractors.
- Payroll records and employee tax certificates.
- Bills of entry and customs documents for goods moved between South Africa and Nigeria.
- VAT 215 forms and supplier invoices for imported services; SARS's guide says to keep these for five years.
- Transfer pricing records, where Public Notice 1334 applies; see transfer pricing between SA and Nigerian companies.
- Working papers that show how naira and dollar amounts were converted to rand.
Paper or electronic
Section 30 lets you keep records in their original form, in an orderly way and in a safe place, or electronically under the public notice issued as GN 787 of 1 October 2012. SARS's policy says electronic records must meet the integrity standard in section 14 of the Electronic Communications and Transactions Act, and you must be able to give SARS a readily accessible, analysable electronic copy, or a paper copy, within a reasonable time.
Cloud storage outside South Africa
This catches many businesses that run their accounts on overseas cloud software or a Nigerian server. The public notice requires electronic records to be held in South Africa, and storing them elsewhere needs prior authorisation from a senior SARS official. The criteria include that the records stay accessible from South Africa for the full retention period and that South Africa has an international tax agreement for reciprocal assistance with the country concerned. Applications go to ElectronicRecords@sars.gov.za, with a description of the arrangement, a motivation and, for offshore storage, a declaration of compliance. If you use customised or uncommon software, SARS also expects you to keep manuals and a written system description.
When to keep records longer
Five years is a minimum. If SARS has opened an audit, or you have lodged an objection or appeal, keep everything for the period in dispute until the matter is finally closed, even if five years have passed. The same applies if you expect to rely on a record later, for example the cost of an asset you will sell.
Records SARS often asks for in cross-border cases
When a South African business pays or is paid by Nigerian parties, SARS questions tend to be about whether a payment was what it says it was. Keep, for each significant transfer, the contract or invoice behind it, the bank confirmation, the exchange rate used and any reason code given to the bank. See preparing for a SARS audit of payments to Nigeria.
Records on the Nigerian side
A Nigerian subsidiary or branch keeps its own records under Nigerian law, and the rules are not the same. Nigeria's simple system for small businesses is in bookkeeping for small businesses in Nigeria. Keep the two sets consistent: the intercompany invoice in Johannesburg should match the one in Lagos.
What to check first
- For each tax type, the date you submitted the return, which starts the five-year clock.
- Where your electronic records physically sit, and whether that needs SARS authorisation.
- Whether you can produce any record quickly in a readable form.
- Whether any audit or objection is open.
Where Pryme fits
Payments through a Pryme Business Account can carry a verifiable receipt or statement from VerifyDoc.ai, which anyone can check is genuine and unaltered (receipts and statements), and the Finance agent keeps invoices and payments linked. Check with your adviser whether your storage arrangements meet SARS's location rules; see also verifiable receipts as an audit trail.
Questions people ask
How many years must I keep business records in South Africa?
Five years from the date the return was submitted, or from the end of the tax period if no return was required. Keep them longer if an audit, objection or appeal is open.
Can I keep my records in the cloud?
Yes, electronically, if they meet the integrity standard and you can produce them for SARS. Records stored outside South Africa need prior authorisation from a senior SARS official.
Do I have to keep paper invoices?
No. Records can be kept in original form or electronically under GN 787, as long as they stay intact and accessible.
Does the five-year rule apply to VAT records too?
Yes. SARS's VAT vendor page says tax invoices, bills of entry and accounting records must be kept for five years.
Sources
- SARS: GEN-GEN-23-POL02 Manage taxpayer record retention authorisation, external policy (effective 27 Nov 2023) · accessed Oct 2026
- SARS: Obligations of a VAT vendor (updated 19 Aug 2026) · accessed Oct 2026
- SARS: VAT-ELEC-01-G01 Manage Value-Added Tax on imported services (external guide) · accessed Oct 2026
- SARS: Public Notice 1334, transfer pricing records under section 29 TAA (28 Oct 2016) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.