Business zakat: how to calculate it on stock and cash
AmanaFi team · Updated · 1 min read
For a trader, zakat applies to goods for sale, cash and reliable receivables, minus debts due. The rate is 2.5% of the net value, assessed on the yearly due date.
What enters the calculation
On your due date, take stock.
- Stock of goods at today's market value.
- Cash in the till and in accounts.
- Customer receivables you can reasonably count on.
What is subtracted
Subtract debts due in the short term, such as suppliers to pay. Equipment, premises and production tools are generally not counted, unlike goods meant for resale.
Keeping it simple
Choose a fixed date, for example after the year-end inventory, and keep a written summary. Value stock at its wholesale or market price, according to the opinion you follow, consistently each year.
Frequently asked
Must I pay zakat on unsold stock?
Yes, as long as it is meant for sale, it is counted at today's value. Unsellable stock can be valued at its real resale value.
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