Billing system technology in the market nowadays is less efficient in parallel with revolution of technology. Conventional method widely uses a barcode scanner that has disadvantages as it is a manual system and requires man power. Besides that, the conventional method does not store the information such as warranty of the product and the information of a buyer. Using the smart shop billing system using Radio Frequency Identification (RFID) reader and RFID tag, the system will become more efficient and automated. The system consists of two main elements which are passive RFID tag (125 kHz) and RFID reader (ID-20LA) that has similar function with a barcode tag and a barcode scanner. For the hardware components, the Espresso Lite V2.0 acts as a microcontroller and UC00C acts as Universal Asynchronous Receiver/Transmitter (UART) converter and Arduino IDE is used as a platform to link between hardware and software. The system is completed with the Internet of Things (IoT) technique to make sure the system can be operated wirelessly. As a result, all the information from the reader will be sent to Google spreadsheet as a cloud to store the information about the item to generate GUI bill. In conclusion this proposed system also uses a real time tracking.