Which Shop Items Are Required to Pay Zakat?

Trade goods in a shop are subject to Zakat, while fixed assets are not.

When determining which goods in a shop are subject to Zakat, they fall into two main categories:

1. Trade Goods: 

These are items prepared specifically for sale, such as real estate, food, clothes, or any other goods intended to be resold. Zakat must be paid for these items.

1. Fixed Assets: 

These include items not prepared for resale, such as manufacturing equipment, cars, furniture, cameras, and computers. These are used for business operations and are not subject to Zakat.

The following are key points related to Zakat on shop assets:

• Zakat on Trade Goods: 

Zakat is obligatory on trade goods, which are goods bought for resale. The Zakat amount is calculated based on the sale price, not the purchase price. The rate is 2.5% (one-quarter of one-tenth) on the total value of these goods when it reaches the Zakat anniversary.

• Fixed Assets: 

Office furniture, equipment, and fixed assets aren't subject to Zakat unless part of trading activities.

• Lost Goods: 

Goods lost in a fire or other accidents are not included in the Zakatable assets of the store. However, new items purchased for resale after such events are subject to Zakat if bought with the store’s funds. Zakat on these items is due from the time of acquisition.

• Debts: 

Debts owed to the shop that may not be repaid are not subject to Zakat until they are collected. Debts owed by people who delay payments or are poor are excluded until the funds are received.

Thus, Zakat is due only on trade goods (items intended for resale), while fixed assets and other non-sale items are exempt. Ensure that Zakat's calculation is correctly based on the value of trade goods and the time of acquisition.

And Allah knows best!

Other Zakat Questions You May Have

• How Can a Restaurant Calculate Zakat on Its Stock?
• 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?