Record keeping

Records covered under Part XIV of the VATP Guidelines

Q1 : Are non-trade related documents such as expenses invoices and bank statements within the definition of “records” under Part XIV of the VATP Guidelines?

Yes, no differentiation should be made between trade or non-trade related documents so long as they are all records necessary to explain the business operations and financial position of a Platform Operator or its associated entity.

(Key references: Paragraph 14.2 of the VATP Guidelines)

Form in which records are to be kept

Q2 : Are there any requirements on the form of record being kept? Can the records be kept in electronic form?

As a general principle, records kept in electronic form are acceptable so long as they can be readily convertible into written form. Platform Operators (and their associated entities) are also expected to have all necessary procedures to guard against damage, falsification, tampering with and destruction of these records.

(Key references: Paragraphs 14.4 and 14.5 of the VATP Guidelines)

Q3 : Can Platform Operators or their associated entities keep copies of non-trade related documents, such as invoice or bank statement, instead of the originals?

Platform Operators and associated entities are expected to keep the original instead of copies of the relevant records, whether they are trade-related or non-trade related.

(Key references: Paragraph 14.4 of the VATP Guidelines)

Record retention period

Q4 : Are order books and order records only required to be kept for two years?

Time-sequenced records of orders and instructions that Platform Operators receive or initiate are required to be retained for a period of not less than two years.

(Key references: Paragraph 14.8 of the VATP Guidelines)

Q5 : If orders/ instructions are received via e-mail from clients, are the original e-mail orders required to be kept for two years?

Yes, as they form part of the records which are required to be kept under paragraphs 14.8(c) and 14.8(d) of the VATP Guidelines.

(Key references: Paragraph 14.8 of the VATP Guidelines)

Q6 : In the case where daily compliance checking is performed by a Platform Operator (or its associated entity), how long should the underlying records be kept?

If such records are necessary to demonstrate the Platform Operator’s (or its associated entity’s) compliance with the requirements of the VATP Guidelines; or to demonstrate that the Platform Operator (or its associated entity) has systems of control in place to ensure such compliance, they are required to be kept for seven years.

For other records of daily compliance checking, the retention period is not prescribed. However, as a good practice of internal control, Platform Operators (and their associated entities) are expected to retain those records for a reasonable period of time in order to provide sufficient audit trail to facilitate both internal and external audits. In particular, if such records are important compliance records necessary to demonstrate compliance with rules and regulations applicable to the Platform Operators (or their associated entities) as required under paragraph 11.15 of the VATP Guidelines, Platform Operators (and their associated entities) are generally recommended to keep these records for seven years.

(Key references: Paragraph 14.7 of the VATP Guidelines)

Last update: 1 Mar 2024