E-commerce & Trading Accounting & Tax in Singapore

Our Singapore e-commerce and trading accounting services are built for businesses that buy and sell goods:

• Direct-to-Consumer (DTC) Brands: Brands using Shopify or other platforms to sell to customers in Singapore and across the APAC region.
• Marketplace Sellers: Businesses leveraging regional marketplaces like Lazada, Shopee, and Amazon.sg, requiring careful tracking of marketplace fees and payouts.
• Import/Export Trading Companies: Businesses using Singapore as a base to import goods and re-export them to neighboring countries like Malaysia, Indonesia, and Australia.
• International Brands Using Singapore as an APAC Hub: Foreign companies that have established a Singaporean entity to manage their regional warehousing, logistics, and distribution.

From your first shipment, accurate financial tracking is key. Specialized e-commerce accounting becomes non-negotiable when:

• You Import Goods into Singapore: This immediately triggers the need to manage customs declarations and account for import GST, which can often be claimed back if you are GST-registered.
• You Cross the GST Registration Threshold: Once your taxable turnover exceeds S$1 million in a 12-month period, you must register for GST and begin filing quarterly returns with IRAS.
• You Hold Inventory: Properly accounting for the Cost of Goods Sold (COGS) is fundamental to understanding your true profit margin on each product sold, a requirement under Singapore Financial Reporting Standards (SFRS).
• You Sell on Multiple Channels: Reconciling sales, fees, and payouts from your own website, Lazada, and Shopee becomes a complex task requiring specialized software and expertise.
• You Seek Financing: Banks and investors will require detailed financial statements, including an accurate inventory valuation and gross margin analysis, before providing capital.

Outsourcing e-commerce accounting is a critical investment in compliance and profitability. Costs in Singapore are based on transaction volume and complexity.

• Small Stores / Single Channel: S$500 - S$1,200 per month. This covers bookkeeping, GST return filing, and reconciliation for one sales channel.
• Growing Brands / Multi-Channel: S$1,200 - S$3,500 per month. This typically includes management of more complex inventory and reconciliation across multiple platforms.
• Large-Scale Traders: Custom pricing starting at S$3,500+, often involving integration with advanced inventory management systems and strategic advice on supply chain financing.

The e-commerce and trading sector in Singapore has specific compliance risks that can lead to significant financial penalties:

• GST Non-Compliance: The biggest risk. Failure to register for GST when required, or filing incorrect returns, can lead to substantial penalties from IRAS. The rules for imported goods and sales to overseas customers are particularly complex.
• Incorrect Customs Valuation: Improperly declaring the value of imported goods can lead to fines and delays at Singapore Customs.
• Inaccurate COGS and Inventory Accounting: Incorrectly valuing inventory and calculating Cost of Goods Sold leads to a flawed profit figure, which can result in overpaying corporate tax and is a major red flag during an audit.
• Poor Cash Flow Management: The capital-intensive nature of holding inventory means that poor management of stock levels and supplier payments can quickly lead to a cash crunch.

E-commerce finance is a niche specialization. Most general accountants lack the specific knowledge to handle GST on imported goods, multi-channel inventory, and the complex fee structures of modern marketplaces. Hiring a full-time e-commerce finance expert is often too expensive for a growing brand.

Outsourcing to YourLegal's e-commerce finance team provides a cost-effective, expert solution. We utilize specialized software (like A2X) to automate GST tracking and reporting, integrate with your inventory systems, and accurately reconcile all your sales data. This ensures you are always compliant with IRAS, have a clear view of your product-level profitability, and can make data-driven decisions on pricing, marketing, and inventory management.