Ecommerce Accounting Singapore: Sales, Payouts, GST and Tax for Shopee, Lazada and Shopify Sellers

Ecommerce accounting in Singapore starts with one rule: record each marketplace order at its full selling price and book the platform's commission, payment and shipping fees as expenses, instead of treating the payout as your sales. Your gross sales decide when GST registration becomes compulsory (above $1 million of taxable turnover) and which income tax return and statement you file.

This guide is for sole proprietors and companies selling on Shopee, Lazada, Shopify, Amazon or their own website, with rules as at November 2026. All amounts are in Singapore dollars (SGD).

Key takeaways

• Record sales gross and platform fees as expenses. IRAS defines revenue as the total gross income of the business.
• GST registration is compulsory once taxable turnover exceeds $1 million in a calendar year, or is expected to in the next 12 months. Zero-rated exports count.
• Once registered, charge 9% on local sales, show GST-inclusive prices online, and zero-rate exports only with export documents obtained within 60 days.
• Platform fees carry GST. A local GST-registered marketplace adds 9% to its fees; overseas apps and platforms registered under the overseas vendor registration (OVR) regime add GST unless you give them your GST number.
• Sole proprietors file Form B by 18 April; companies file Form C-S or Form C by 30 November. Keep records for 5 years.

Table of Contents

1. Should You Record Shopee or Lazada Sales Gross or Net?
2. How to Reconcile Marketplace Payouts (Worked Example)
3. When Must an Online Seller Register for GST?
4. How GST Works for Shopee, Lazada and Shopify Sellers
5. Inventory, Cost of Goods Sold and Payment Gateway Fees
6. Income Tax for Online Sellers (Sole Proprietor vs Company)
7. Common Mistakes Online Sellers Make
8. Monthly Ecommerce Accounting Checklist for Singapore Sellers
9. Do You Need an Accountant for Your Online Shop?
10. Frequently Asked Questions
11. Official Sources

Should You Record Shopee or Lazada Sales Gross or Net?

Record them gross. If a buyer pays $50 and the platform keeps $6 in fees, you have made a $50 sale and incurred $6 of expenses, not a $44 sale.

1. You are the seller. You own the stock, set the price and handle returns. IRAS's e-commerce GST guide treats you as making the supply when you sell goods online for delivery in Singapore, and treats the marketplace's commission, listing fees and service charges as a separate service supplied to you.
2. IRAS measures revenue gross. For sole proprietors, revenue is "the total gross income received from your business"; for the Form C-S test, it is the gross income from the company's principal activities. IRAS also lists platform commission as a deductible expense for online sellers, which only works if sales are recorded before it comes off.
3. Thresholds use gross figures. Netting rarely changes profit, since the fees drop out of both sides, but it understates revenue, which is what these thresholds measure:

How to Reconcile Marketplace Payouts (Worked Example)

Marketplaces and payment gateways issue settlement reports showing what each order earned and what was deducted. The cleanest way to reconcile it is a clearing account for each platform: sales go in, fees and payouts come out, and whatever is left is money the platform still holds for you.

Example (hypothetical figures): an online shop's October 2026 settlement report from one marketplace.

Three lines need care:

• Platform-funded vouchers. The $10,000 includes $500 of vouchers paid for by the platform: buyers paid $9,100 and the platform paid the rest. That money still reaches you, so it stays in sales, and only your own $400 of vouchers reduces sales. IRAS's rule that GST is charged on the net discounted price covers discounts you fund, so check that your settlement report shows who funded each voucher.
• Advertising is an expense, even when it is taken from your balance instead of charged to a card.
• Shipping. If buyers pay a shipping fee to you, record it as sales and the courier's charge as an expense. For GST, IRAS treats a delivery charge you incur as principal and pass on to the buyer as part of your own supply, not as a disbursement, so it follows the GST treatment of the sale.

What the payout hides. Booking the $7,440 payout as revenue understates sales by $1,860, or 20%. Profit is the same either way, but at this ratio $200,000 of payouts a year means $250,000 of sales, above the $200,000 limits for the 2-line statement and Form C-S (Lite). Likewise, $850,000 of payouts means $1,062,500 of sales, above the $1 million GST threshold.

If the shop were GST-registered, its listed prices would include GST, so output tax is 9/109 of the $9,300 of net sales, or $767.89. Working from the payout gives $614.31, which is $153.58 too little. GST charged by the platform on its own fees is claimed separately as input tax, with a valid tax invoice.

To reconcile each month:

1. Download the platform's settlement report and the bank statements showing the payouts.
2. Record sales at listed prices in that platform's clearing account (for example, Shopee clearing).
3. Deduct your own vouchers and refunds as sales discounts and sales returns.
4. Record each fee type in its own expense account: commission, payment processing, service fees, shipping and advertising.
5. Record each bank payout against the clearing account.
6. Check that the clearing balance equals what the platform still holds for you, and investigate any difference.
7. Save the report and the platform's fee invoices with that month's records.

Use one date consistently, such as the order completion date, so sales are not missed or counted twice between months. At year end, completed orders not yet paid out are still that year's revenue: IRAS's definition of revenue covers bills paid or unpaid.

When Must an Online Seller Register for GST?

You must register when taxable turnover exceeds $1 million under either test:

• Retrospective: taxable turnover for a calendar year exceeds $1 million. Apply by 30 January of the next year; registration takes effect on 1 March.
• Prospective: you can reasonably expect more than $1 million in the next 12 months, for example from a signed contract. Apply within 30 days of that forecast. For forecasts made from 1 July 2025, registration takes effect 2 months after the forecast date.

Taxable turnover includes local sales at their full value, zero-rated exports, and direct sales of low-value goods (worth up to $400, held overseas and sent into Singapore by air or post) to Singapore buyers who are not GST-registered. It excludes out-of-scope sales and sales of capital assets. Goods that are outside Singapore when you sell them are out of scope unless they are low-value goods: that covers dropshipped orders above $400, which are taxed at import instead, and goods sent from an overseas supplier straight to an overseas buyer. A seller whose taxable sales are wholly or mainly zero-rated exports can apply for exemption from registration; it is not automatic.

Late registration is costly. IRAS backdates the registration, and you must pay GST on sales from that date even if you never collected it, with a possible fine of up to $10,000 and a penalty of 10% of the GST due. IRAS generally waives the fine and penalty if you disclose the lateness when you apply. Until you are registered, do not add GST to your prices: IRAS treats such GST as collected without authorisation.

Registering voluntarily lets you claim GST on stock, imports and fees, but for consumer sales it usually means higher prices or a smaller margin. If you keep a $100 price after registering, $8.26 of it is GST (9/109 of $100) and you keep $91.74. Unless an exception applies, your owner, director or GST return preparer must first complete IRAS's "Overview of GST" e-learning course. You must also pay by GIRO and stay registered for at least 2 years, and applicants from 1 April 2026 must send invoice data through InvoiceNow. See whether you need to register for GST for the tests in depth, or let our GST registration service handle the application.

How GST Works for Shopee, Lazada and Shopify Sellers

IRAS applies the same GST rules whether you sell through a marketplace, your own Shopify store or a physical shop.

Charging GST on sales. Charge 9% on goods delivered in Singapore. Online prices must include GST unless IRAS has approved otherwise; breaching this carries a fine of up to $5,000. Tax invoices are needed only for GST-registered customers, within 30 days, and consumers can be given a receipt. GST falls in the period of the time of supply, which for most sales is the earlier of the invoice date or payment, so work out which date in your platform reports reflects that and use it consistently. Returns are usually quarterly, e-filed on myTax Portal and due one month after the quarter ends; our GST F5 filing guide explains the boxes.

Platform fees, overseas apps and advertising. A local GST-registered marketplace charges 9% on its commission and service fees unless zero-rating applies, and a GST-registered seller claims it back with the platform's tax invoice. Overseas suppliers of marketplace services, subscriptions, apps and ads that are registered under OVR add GST unless you give them your GST registration number. If you are not GST-registered, never enter a number to avoid the charge: IRAS treats misrepresentation to an overseas vendor as a serious offence, with a fine of up to $10,000 on conviction and heavier penalties for wilful evasion. If you are GST-registered and are charged anyway, ask for a refund, because you cannot claim that GST as input tax. Reverse charge applies only to businesses that cannot claim input tax in full, such as those making exempt supplies, which is rare for a seller of goods.

Zero-rating exports. You must export the goods and hold the evidence within 60 days of the time of supply, or charge 9%. For parcels sent by post or courier, IRAS's e-commerce and exports guides require:

• the courier consignment note, parcel despatch note or air waybill, endorsed by the courier, naming you as exporter or sender and describing the goods;
• the buyer's purchase order or equivalent, and your sales invoice;
• proof of delivery, such as the courier's online tracking record showing the goods reached the buyer;
• insurance documents, if any; and
• evidence of payment from the buyer.

If a platform's cross-border logistics service ships for you, check that you can get documents in your name before you zero-rate those sales.

Inventory, Cost of Goods Sold and Payment Gateway Fees

Stock bought for resale becomes an expense only when it is sold, as cost of goods sold (COGS):

COGS = opening stock + purchases − closing stock

Example (hypothetical): opening stock of $8,000 plus purchases of $40,000 less closing stock of $12,000 gives COGS of $36,000. Expensing all $40,000 of purchases would understate this year's profit by $4,000 and overstate a later year's.

• Count stock at your financial year end, including stock held in a platform's fulfilment warehouse or by a logistics provider.
• Include inbound freight, import duties and any import GST you cannot claim in the cost of stock.
• Write down damaged stock or stock you can sell only below cost, keeping photos and disposal records as evidence.
• Goods you take for personal use are not a business cost: IRAS counts their selling price as revenue.

Payment gateway fees. A Shopify store or your own website collects payments through a gateway that deducts its fee before paying out. Treat it like a marketplace: record the full order value as sales and the fee as an expense, treat refunds and chargebacks as sales returns, and reconcile the gateway's payout report to your bank. Whether a gateway's fee carries GST depends on the provider and the service, so claim only GST shown on a valid tax invoice addressed to your business. Record foreign-currency sales in Singapore dollars and book any difference on payout as an exchange gain or loss.

Income Tax for Online Sellers (Sole Proprietor vs Company)

IRAS taxes income from selling online on your own account for profit, part-time or full-time. Sales through an overseas platform such as Amazon US are still taxable in Singapore if the business operations behind them are based here. Clearing out your own used belongings is not trading.

A company must also file Estimated Chargeable Income (ECI) within 3 months of its financial year end, unless its revenue is $5 million or less and its ECI is nil.

Cost of goods sold comes off revenue first. IRAS's examples of deductible expenses for online sellers then include maintaining your e-commerce site or account, commission and administrative charges paid to third-party operators, advertising, maintaining or repairing business equipment, and content production. Personal, private and capital expenses are not deductible; IRAS's own example disallows private car costs even for business trips. Equipment and other fixed assets are claimed through capital allowances instead, whether you are a sole proprietor or a company, and IRAS allows computers to be written off in one year.

Before you incorporate, compare sole proprietorship vs Pte Ltd tax, and see Form B vs Form B1 for the individual return. Our personal tax filing service can prepare a sole proprietor's Form B.

Common Mistakes Online Sellers Make

• Booking payouts as sales, which understates revenue against every threshold above.
• Deducting fees twice: booking the net payout as sales and then also expensing the platform's fee invoice.
• Expensing stock when it is bought, so profit swings from year to year without a closing stock count.
• Ignoring money the platform holds at year end. Completed orders not yet paid out are still that year's sales.
• Counting only local sales towards $1 million. Exports and direct sales of low-value goods count too.
• Zero-rating exports without the documents obtained within 60 days.
• Estimating figures. IRAS does not accept estimates for revenue or expenses, so work from the platform reports.
• Mixing personal and business money. IRAS suggests a separate bank account for the online business.

Monthly Ecommerce Accounting Checklist for Singapore Sellers

1. Download settlement reports from every platform and payment gateway, plus your bank statements.
2. Reconcile each clearing account to the payouts and to the balance the platform still holds.
3. Record stock purchases with supplier invoices and import documents.
4. File fee invoices from platforms, apps and ad accounts, keeping tax invoices for input tax claims.
5. Update your running taxable turnover for the calendar year and the next 12 months, including exports.
6. Collect export documents for overseas orders well within the 60-day limit.
7. If you are GST-registered, set aside GST for the quarterly GST F5 and check whether InvoiceNow applies to you.
8. Back up the month's records; IRAS requires business records to be kept for 5 years.

Do You Need an Accountant for Your Online Shop?

Not always. Ecommerce accounting for a seller on one platform, with little stock and sales far below $1 million, can run on a spreadsheet using the clearing-account method, a separate bank account and the checklist above. IRAS also offers Simplified Record Keeping for small businesses that meet its conditions.

Get help when you sell across several platforms, currencies or payment gateways, hold significant stock, are approaching $1 million or exporting, are weighing voluntary GST registration or incorporation, or are months behind with your records.

Tax Filing SG is run by ex-Big 4 Singapore Chartered Accountants (ISCA members). We reconcile platform payouts, keep the books, track your GST threshold and file your returns; see our accounting services. Order volumes vary widely, so send us a sample settlement report and we will quote for your case.

Frequently Asked Questions

Do Shopee sellers need to pay tax in Singapore?

Yes, if you sell for profit, part-time or full-time. A sole proprietor must file Form B if net trade income exceeds $6,000, total income exceeds $22,000, or IRAS asks, and pays tax at resident progressive rates. A company pays 17% on chargeable income after exemptions and files a return every year by 30 November. Clearing out your own used belongings is not taxable.

Do I charge GST on Shopee sales?

Only once you are GST-registered; until then, do not add GST to your prices. After registering, you charge 9% on goods delivered in Singapore, show GST-inclusive prices, and can zero-rate exports if you hold the export documents within 60 days. Registration is compulsory once taxable turnover exceeds $1 million in a calendar year, or is expected to in the next 12 months.

Are marketplace fees subject to GST?

Usually. IRAS treats commission, listing fees and service charges as services the marketplace supplies to you. A local GST-registered marketplace charges 9% GST on them unless zero-rating applies, and GST-registered sellers can claim it back with the platform's tax invoice. An overseas marketplace registered under the OVR regime charges GST on its fees to sellers that are not GST-registered.

Do I need to register a business to sell online in Singapore?

Usually, yes. ACRA requires anyone carrying out an activity for profit on a regular basis to register a business unless exempted, and names online stores, drop shipping and selling through social media as examples. Trading only under your full name as shown on your NRIC is exempt. Failing to register when required can mean a fine of up to $10,000, up to two years' imprisonment, or both.

Is selling my own used items on Carousell taxable?

Not if you are simply clearing out belongings you bought mainly for personal use; IRAS treats that as not taxable. It becomes taxable once buying and selling turns into a trade, for example when you buy items to resell or sell regularly in an organised way. From then on, report the profit and keep records for 5 years like any other online seller.

Do online sellers have to pay MediSave?

Yes, if you are a self-employed Singapore Citizen or PR with net trade income above $6,000 a year. CPF Board sends a notice of contributions after IRAS assesses your income; payment is due 30 days from the notice date, and instalment plans are available. Mandatory MediSave contributions qualify for full tax relief.

Official Sources

• IRAS e-Tax Guide: GST Guide for E-Commerce (PDF) (marketplace fees, low-value goods, export documents, price display)
• IRAS: Tax Guide for Online Sellers and Service Providers (taxable income, filing and deductible expenses)
• IRAS: Calculating business income (revenue and the 2-line and 4-line statements)
• IRAS: Do I need to register for GST (the $1 million tests and late registration)
• IRAS e-Tax Guide: GST Guide on Exports (PDF) (the 60-day rule)
• IRAS e-Tax Guide: Imported remote services under the OVR regime (PDF) (GST charged by overseas apps and marketplaces)
• IRAS: Corporate income tax rate, rebates and exemption schemes (17% rate and exemptions)
• ACRA: Requirements for registering a business (when online sellers must register)

About Tax Filing SG — We are a Singapore accounting practice run by ex-Big 4 Singapore Chartered Accountants (ISCA). We handle accounting, corporate tax, GST and company secretarial work for Singapore SMEs, including overdue and late filings.

Last updated: 9 November 2026. This article is general information based on IRAS and ACRA guidance as at November 2026, not advice for your specific situation. Rules, rates and deadlines change, so check the official sources above or speak to us before acting.