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E-commerce Businesses Services Needed Throughout the Year:



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Pakistan’s e-commerce sector has witnessed rapid growth in recent years, with businesses selling through platforms like Daraz, Shopify, Amazon, social media, and their own websites. While digital storefronts and online payments make selling easier, managing finances, taxation, and compliance in e-commerce is increasingly complex. From calculating platform commissions and reconciling digital wallets to filing income and sales tax, e-commerce businesses must stay financially organized to scale and avoid penalties.

This article outlines the essential accounting and tax services e-commerce businesses in Pakistan need throughout the year to operate efficiently, stay compliant, and grow confidently.

Why Accounting and Tax Management Is Crucial for E-commerce

  • Tracks revenue across multiple platforms and payment gateways

  • Manages inventory costs and fulfillment expenses

  • Ensures compliance with FBR and provincial tax authorities

  • Improves cash flow, pricing, and profitability decisions

  • Avoids legal fines, notices, or business shutdowns

Monthly Services Required

1. Bookkeeping and Transaction Recording

  • Record daily sales from marketplaces (Daraz, Amazon, etc.), social media, and websites

  • Track expenses including ads, delivery charges, platform fees, and refunds

  • Reconcile cash, bank accounts, Easypaisa, JazzCash, PayPal, Stripe, or payment gateway accounts

  • Maintain sales and expense ledgers by channel and category

2. Inventory and Cost of Goods Sold (COGS) Tracking

  • Monitor stock levels, purchase costs, and reorder points

  • Record COGS based on FIFO, LIFO, or weighted average methods

  • Account for damaged, returned, or unsold inventory

3. Platform Commission and Fee Reconciliation

  • Account for commission and service fees charged by Daraz, Amazon, or Shopify

  • Record net receipts after platform deductions

  • Track promotional and advertising costs deducted by platforms

4. Sales Tax Compliance

  • Maintain record of taxable and non-taxable sales

  • File monthly sales tax returns with FBR or provincial tax authorities (PRA, SRB, KPRA, BRA)

  • Claim input tax on eligible purchases

  • Ensure STRN registration and invoice compliance

5. Payroll (if applicable)

  • Pay salaries or stipends to employees, warehouse workers, or virtual assistants

  • Deduct payroll taxes (Section 149)

  • Maintain salary slips and payment records

Quarterly Services Required

1. Financial Reporting and Performance Analysis

  • Generate profit and loss statements by sales channel

  • Analyze marketing spend, delivery charges, and return rates

  • Track performance KPIs like gross margin, AOV, conversion rate, and CAC

  • Create reports for partners, investors, or internal planning

2. Advance Tax Payments

  • Estimate and pay advance income tax under Section 147 (if taxable income threshold is crossed)

  • Avoid default surcharge and penalties

3. Budgeting and Cash Flow Planning

  • Forecast cash needs for restocking, marketing, and logistics

  • Allocate funds for upcoming product launches or sales campaigns

  • Prepare quarterly budgets for better capital allocation

Annual Services Required

1. Income Tax Return Filing

  • File annual income tax return (Section 114)

  • Declare all income from online sales, affiliate commissions, or ads

  • File wealth statement and reconciliation for sole proprietors or directors

  • Attach profit and loss account, balance sheet, and tax computation

2. Financial Statement Preparation

  • Prepare audited or management accounts based on turnover and business structure

  • Include P&L, balance sheet, cash flow statement, and notes to accounts

  • Required for tax filing, investor reporting, or bank loans

3. SECP Compliance (for Registered Companies)

  • File Form A (Annual Return) and Form 29

  • Maintain statutory books and hold board meetings

  • Update shareholding, directors, or business structure changes

4. Audit Support and Documentation

  • Provide reconciled ledgers and supporting documents for tax audits

  • Respond to FBR notices under Section 176 or Section 122

  • Assist auditors in verifying inventory, revenue, and compliance

One-Time or As-Needed Services

1. Business Registration

  • Register as Sole Proprietor, Partnership (AOP), or Private Limited Company

  • Obtain NTN and STRN from FBR

  • Register with provincial revenue authorities (SRB, PRA, etc.) for service-related business

2. Platform Compliance

  • Set up accounting systems integrated with Daraz Seller Center, Shopify, WooCommerce, Amazon Seller Central

  • Configure invoice templates to meet FBR standards

  • Register for Digital Service Tax or e-commerce-specific levies if applicable

3. International Sales & Export Compliance

  • File for export declarations and exemptions if selling to overseas customers

  • Register with PSEB for IT-related products or services

  • Maintain remittance records for PayPal, Stripe, or TransferWise income

4. Responding to FBR or PRA Notices

  • Draft and submit replies to audit or inquiry notices

  • File appeals or rectifications

  • Support during physical or digital tax inspections

5. VAT or Sales Tax Registrations in Foreign Markets

  • If selling internationally via Amazon or Shopify, register for VAT in EU/UK or Sales Tax in US states

  • File international returns using expert services or agents

Accounting Software Recommended for E-commerce Businesses

  • QuickBooks Online – integrates with Amazon, Shopify, PayPal

  • Zoho Books – great for inventory-heavy e-commerce

  • Xero – preferred by international sellers

  • GoDaddy Bookkeeping or Wave – suitable for small online stores

  • Trellis, A2X, or Synder – platforms that sync e-commerce sales data with accounting systems

Benefits of Outsourcing Accounting and Tax for E-commerce

  • Saves time in managing multichannel transactions

  • Provides real-time cash flow and profitability insights

  • Reduces errors in inventory and tax filings

  • Keeps the business audit-ready and compliant

  • Ensures optimized tax savings and credits

Frequently Asked Questions (FAQs)

Q: Is sales tax registration mandatory for e-commerce businesses?
Yes. If you’re selling taxable goods or services in Pakistan, especially above the registration threshold, you must obtain an STRN and file monthly sales tax returns.

Q: Can I operate an online store without registering a business?
Technically yes for very small sellers, but to work with platforms like Daraz or Amazon and avoid legal risk, business registration and NTN are essential.

Q: How are platform commissions and fees recorded in accounting?
They are treated as selling expenses. Net income after fees is recorded as revenue, and platform commissions are recorded separately for transparency.

Q: Can e-commerce income from Amazon or Shopify be tax-exempt?
No. Income earned from international platforms is taxable unless exempt under IT export incentives. Proper declaration is required.

Q: What if I receive payment via PayPal or Stripe?
You must declare this income in your tax return. Maintain transaction records, invoices, and bank inflow details.

Conclusion

Running an e-commerce business means managing more than just product listings and customer orders. Financial discipline, tax compliance, and platform integration are key to running a profitable and scalable online venture. Whether you’re selling on Daraz, Shopify, Amazon, or your own website, working with a professional accountant ensures your business stays compliant, optimized, and investor-ready at all times.

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