Skip to content

Tax guide for e-commerce and online business.

For Shopee and Lazada sellers, dropshippers and every type of online business in Malaysia.

Find your tax formCalculate your tax
e-CommerceUpdated 2026
Important

Platforms report your sales to LHDN.

Shopee and Lazada report transaction data to LHDN. Declare your income honestly on Form B to avoid penalties.

Which form to use
Tax form
Form B
not Form BE
Taxed on
Net profit
sales minus COGS and expenses
  • Income type
    Business income
  • Form to file
    Form B
  • Platforms
    Shopee, Lazada and other online stores
  • Full-time job + online store
    Still Form B

Claimable expenses

As an e-commerce seller, you can claim business-related expenses.

01 · Stock

Cost of goods (COGS)

02 · Delivery

Shipping and postage

03 · Platform

Platform fees (Shopee, Lazada)

04 · Packing

Packaging materials

05 · Marketing

Marketing and ads

06 · Storage

Storage and warehouse

Calculation formula

You are taxed on profit, not sales.

Example
Total sales (gross)
RM100,000
COGS and expenses
− RM60,000
Net profit (taxable)
RM40,000

Common mistakes

And how to avoid them.

Mistake

Not declaring online sales

E-commerce platforms report to LHDN. Don't risk an audit.

Mistake

Mixing personal and business

Use separate bank accounts to properly track income and expenses.

Mistake

Not keeping invoices

Keep supplier invoices for COGS proof and expense claims.

Correct tax form

E-commerce income is business income.

Use Form BB

Form B, not Form BE

  • E-commerce income is classified as business income, so you must use Form B
  • If you have a full-time job and sell online, still use Form B and declare both incomes (salary and e-commerce)
Form B vs Form BE

Related guides

Guide
Freelancer
Tax for self-employed income
Guide
Form B
How to fill it in
Guide
Tax relief
The complete list of reliefs
Calculator
Income tax
Calculate your tax instantly

Sources: LHDN, Business Income (business income guidelines); LHDN, Tax Forms (individual tax form information). Updated 2026. Information on this page is based on official LHDN guidelines and Malaysian government sources.

Automate your e-commerce accounting

CukaiMax helps track sales, auto-categorise expenses and generate tax reports.

Get startedCalculate your tax

On the App Store. Google Play coming soon.

Form B · Online seller
Shopee payoutsIncome
Supplier invoicesCOGS
Shipping and packagingExpense

Stop overpaying taxes.

Track receipts year-round, auto-categorise deductions and export LHDN-ready files.

Start with CukaiMax