What Bookkeeping Records Must an Online Seller Keep in Malaysia?

The Income Tax Act requires a person carrying on a business to keep sufficient records so that income or loss can be worked out. Section 82 defines records to include books of account recording receipts and payments or income and expenditure, together with invoices, vouchers and receipts. Records must be kept in Malaysia, for seven years from the end of the year to which they relate (section 82).

What an online seller should collect

• Order and sales reports exported from each marketplace, such as Shopee Seller Centre, Lazada Seller Center or TikTok Shop Seller Center.
• Platform fee statements and wallet or payout statements.
• Supplier invoices and proof of payment for stock.
• Courier and packaging invoices.
• Advertising invoices (platform ads, social media ads).
• Bank and payment gateway statements.
• A stock register.

Practical habits

• Use a separate bank account for the business so personal spending does not mix with sales.
• Record sales monthly instead of waiting for the tax season.
• Keep digital copies of platform reports, since platforms may only retain data for a limited time.

There is no tax rule that says a sole proprietor must use accounting software, but the records must be sufficient. Companies must also meet the accounting duties in the Companies Act 2016.