# How long should businesses keep delivery notes? Retention periods explained

[Delivery notes](https://www.ionos.ca/digitalguide/startup/grow-your-business/creating-a-delivery-note-what-is-a-delivery-note/) do not generally have a separate federal retention period of their own in Canada. Instead, a delivery note may need to be retained when it forms part of the **supporting documentation for a business transaction, accounting entry, expense, purchase or tax return**.

### Key Takeaways

Retention of delivery notes in Canada depends on what the document supports:

- Delivery notes generally do not have a separate federal retention period of their own. What matters is what the document is used to substantiate.
- For income tax and GST/HST purposes, supporting records are generally kept for at least six years from the end of the last tax year they relate to.
- Longer periods can apply, for example for records relating to property or other long-term assets.
- Digital delivery notes are generally subject to the same recordkeeping requirements as paper ones, so businesses should ensure they stay readable, retrievable and linked to the transaction.
- A structured document management system, including AI-based tools, can help businesses store and classify delivery notes.

There is no universal federal retention period that applies specifically to every delivery note.

The [Canada Revenue Agency (CRA)](https://www.canada.ca/en/revenue-agency.html "Official Canada Revenue Agency website") requires businesses to maintain records that substantiate income and expenses reported on their tax returns. Supporting business documents can include [invoices](https://www.ionos.ca/digitalguide/startup/grow-your-business/creating-an-invoice-tips-for-businesses/), receipts, paid bills and other records relating to purchases and sales. A delivery note can serve a similar supporting function when it helps document a particular transaction.

## How long do businesses need to keep delivery notes in Canada?

The appropriate delivery note retention period depends primarily on what the document is being used to substantiate.

For federal [income tax](https://www.ionos.ca/digitalguide/startup/grow-your-business/income-tax/) purposes, businesses generally need to keep records supporting income, deductions and credits for the **retention period set by the Income Tax Act**. In ordinary circumstances, this period is generally **six years from the end of the last tax year they relate to**. Records supporting GST/HST amounts are generally subject to a six-year period under the Excise Tax Act as well.

However, longer periods can apply in certain situations. For example, records relating to property or other long-term assets may need to be retained for longer.

Delivery notes may be relevant, for example, when they:

- confirm that goods were delivered or received,
- support purchase or sales records,
- provide evidence for business expenses,
- help substantiate inventory purchases,
- support entries reported on a federal tax return.

If a delivery note supports an item reported on a tax return, it should therefore be retained for the applicable period.

<table>
  <thead>
    <tr>
      <th>Type of delivery note</th>
      <th>General federal retention approach</th>
      <th>Reason</th>
    </tr>
  </thead>
  <tbody>
    <tr>
      <td><strong>Delivery note supporting income, purchases or deductible business expenses</strong></td>
      <td>Generally at least 6 years from the end of the last tax year it relates to</td>
      <td>Supports items reported on a federal income tax return</td>
    </tr>
    <tr>
      <td><strong>Delivery note supporting GST/HST amounts, such as input tax credits</strong></td>
      <td>Generally at least 6 years from the end of the last year it relates to</td>
      <td>Supports amounts reported on a GST/HST return</td>
    </tr>
    <tr>
      <td><strong>Delivery note connected to property or another long-term asset</strong></td>
      <td>Potentially longer</td>
      <td>Records may be needed to establish adjusted cost base, depreciation or gain or loss</td>
    </tr>
    <tr>
      <td><strong>Delivery note without tax, accounting, contractual or other legal relevance</strong></td>
      <td>No specific general federal retention period</td>
      <td>Businesses should assess whether there is another reason to retain it</td>
    </tr>
  </tbody>
</table>

There is therefore **no universal federal retention period that applies specifically to every commercial delivery note**. Businesses should determine what the document supports and which federal, provincial, contractual or industry-specific requirements apply before disposing of it.

### Why should businesses keep delivery notes?

Delivery notes can help businesses demonstrate that goods were supplied or received. They are particularly **useful when checking invoices, resolving discrepancies and substantiating business transactions**.

A delivery note may contain information such as supplier or customer details, delivery dates, descriptions and quantities of goods, and references to purchase orders or invoices.

Keeping these documents together with related invoices and accounting records can make transactions easier to trace and provide supporting evidence if the CRA examines a tax return.

## What is the retention period for paper delivery notes?

There is no separate federal retention period specifically for paper delivery notes. If a paper delivery note supports information on a federal tax return, it should generally be retained for as long as the underlying record is required.

For many ordinary income tax records, this means keeping the document for **at least six years from the end of the last tax year they relate to**. Longer periods may apply depending on the circumstances.

Businesses should ensure that relevant delivery notes are complete, easy to locate and connected to the corresponding transaction. Before destroying records, businesses should also check whether provincial law, contractual obligations, insurance requirements or other regulations require them to be retained for longer.

## What is the retention period for digital delivery notes?

For federal tax purposes, relevant business records can generally be stored electronically. The CRA applies recordkeeping requirements to electronic business records as well as paper records.

An electronic recordkeeping system should preserve a **complete and accurate record** and make the information accessible to the CRA when required.

When storing delivery notes digitally, businesses should therefore ensure that:

- documents remain readable throughout the applicable retention period,
- records can be retrieved when required,
- files accurately reproduce the information in the original records,
- documents can be linked to the relevant business transaction.

Businesses that convert paper records into electronic form should use a system that reliably indexes, stores, preserves, retrieves and reproduces the information.

Note Simply saving delivery notes in an unstructured email inbox or unrelated folders can make it more difficult to locate the documentation needed to substantiate a transaction.

## How should businesses store delivery notes?

Many businesses receive large numbers of delivery notes, especially when dealing with regular suppliers. A **structured document management system** can make these records easier to store and retrieve.

Useful practices include:

- storing delivery notes together with related invoices,
- using consistent file names,
- organizing documents by supplier, date or project,
- backing up digital records regularly,
- applying retention rules based on the purpose of each document.

Automated document management systems can also help extract information from delivery notes and assign documents to the appropriate transaction.

Businesses operating in more than one province should also consider whether **provincial tax, corporate or other recordkeeping requirements** apply in addition to federal rules.

## How can AI help with archiving delivery notes?

Manually reviewing large numbers of delivery notes can be time-consuming, particularly for small and medium-sized businesses. Businesses may not always have the resources to check each document individually to determine what transaction it relates to and how long it should be retained.

[AI](https://www.ionos.ca/digitalguide/online-marketing/online-sales/what-is-artificial-intelligence/)-based systems can help automate this process. **Specialized document management systems** can extract information from delivery notes, classify documents and apply predefined retention rules. Systems that use tamper-resistant storage can also help protect archived documents against subsequent changes and support reliable digital recordkeeping.

For example, an SMB that receives numerous delivery notes each day could use a specialized AI system as follows:

1. A new delivery note is automatically detected in the archive and its contents are extracted.
2. The AI system analyzes information such as the supplier, goods, quantities, invoice references and relevant accounting information.
3. The system classifies the document according to predefined document types.
4. Based on predefined rules, the system can suggest an appropriate retention period or apply one automatically and archive the document accordingly.

**Automation like this can be particularly useful** for SMBs because different federal, provincial and internal retention requirements may apply to different documents. A digital archive with predefined compliance rules can help make archiving processes more efficient. However, responsibility for complying with applicable legal and tax requirements remains with the business.

## What happens if businesses do not keep delivery notes?

A business does not generally face a penalty simply because a particular delivery note is missing. The more important question is whether the business can **substantiate the transaction or tax item that the document supported**.

If a business cannot provide adequate records during a CRA examination, it may have difficulty substantiating income, expenses, deductions or other items reported on its tax return. This can result in deductions being disallowed or adjustments being made to the tax owed, depending on the circumstances.

Businesses should therefore regularly review which delivery notes need to be retained, how long the underlying records should be kept and whether the documents can be retrieved when needed. A clear process for retaining delivery notes can help businesses maintain reliable accounting records and meet federal tax recordkeeping requirements.

Please note the [legal notice](https://www.ionos.ca/digitalguide/disclaimer/ "Disclaimer") for this article.


This is a markdown version of: [https://www.ionos.ca/digitalguide/startup/grow-your-business/delivery-note-retention-periods/](https://www.ionos.ca/digitalguide/startup/grow-your-business/delivery-note-retention-periods/) for AI/LLM consumption.