How Does a Restaurant Calculate Zakat on its Stock?

When determining Zakat on restaurant stock, all food ingredients and supplies are considered zakatable. 

Their valuation should be based on their present market worth. However, if the current value is difficult to determine, the purchase price can be used as a reference.

To ensure accurate Zakat calculation, restaurant owners should follow these steps:

• Conduct a Stock Assessment: Perform a stock-take on the Zakat anniversary date or a few days before. Ensure that inventory and stock are properly accounted for when calculating Zakat.
• Include All Zakatable Items: Account for all raw ingredients, semi-prepared items, and packaged goods.
• Use the Right Valuation Method:
• Preferably, use the current market value.
• If this is unclear, the purchase price may be used instead.
• Adjust for Price Fluctuations: If there are significant changes in stock value between the assessment and Zakat payment, update calculations accordingly.
• Calculate Zakat at 2.5%:
• Example: If the total stock value is PKR 500,000, the Zakat payable would be PKR 12,500.
• Maintain Proper Records: Keeping yearly stock records helps streamline the process and ensures accuracy.

By following these steps, restaurants can fulfill their Zakat obligations while maintaining financial clarity.

And Allah knows best!

Other Zakat Questions You May Have

• How is Zakat Determined on Property Development Assets?
• How to Value Work-in-Progress and Raw Materials for Zakat?
• Is Zakat Payable on Unpaid Invoices for Sold Goods?
• How to Determine the Zakat Value of Damaged Goods?
• Is Zakat Applicable to Operational Fixed Assets?
• Is Zakat Due on Land Bought for Personal Use or Investment?