Is Zakat Due on Outstanding Invoices for Goods Sold?

Yes, Zakat is due on outstanding invoices for goods sold. 

Outstanding invoices represent money that is expected to be received and therefore form part of a person’s wealth.

Here are the key points:

• Outstanding Receivables: When goods are sold on credit, the amount due is treated as an asset. These receivables are considered part of your wealth and are included in your zakatable assets.
• Zakatable Assets: Zakat is due on all wealth, and outstanding invoices are part of this wealth. They should be included in the total zakatable assets during the annual Zakat calculation.
• Zakat Calculation: On your Zakat anniversary, the total value of your zakatable assets, including outstanding invoices, should be considered. Zakat is calculated at 2.5% of this total amount.
• Payment Timing: If payment is received within the year, Zakat should be paid immediately. If the payment is delayed, the outstanding amount should be included in the next year’s Zakat calculation.

Thus, Zakat is indeed applicable to outstanding invoices, as they represent wealth that is due to be received. This amount should be included in your zakatable assets and calculated accordingly during the annual Zakat assessment.

Paying Zakat with sincerity not only purifies one’s wealth but also uplifts lives in need. If you’re looking to make a lasting difference, consider helping a child at an orphanage in Pakistan like Pakistan Sweet Home, where your support goes beyond charity and becomes a means of transforming futures.

And Allah knows best!

Other Zakat Questions You May Have

• 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?
• Is Zakat Due on Earnings from Driving Lessons?
• Are eBay Resale Items Zakatable After 6 Months?
• Do Taxi Drivers Have to Pay Zakat on Their Cabs?