Zakah on Goods Sold on Credit
Machine translationRead the Arabic original
Fatwa No. ( 19118 )
Q1: I have shops (clothing and perfumes), and I take an inventory of these shops every year, valuing them based on the current wholesale price in the market, and I pay zakah on this basis. I have asked some students of knowledge about my method, and they differed on it. Some approved of my action, while others said: The method of valuation should be based on the current value of the goods at the wholesale price, plus the expected profit from their sale. The disagreement was over the expected profit. The proponents of the first method told me: One of the conditions of zakah is ownership, and this profit is expected, still in the realm of the unseen, and it is not owned. It may not come to pass. So I ask you to guide me to the method of valuation and calculating zakah in detail.
A1: It is obligatory to value the goods prepared for sale at their current price when the lunar year of possession is completed, whether they reach the capital for which they were bought, or fall below it, or exceed it at the time of valuation.
Q1: I have shops (clothing and perfumes), and I take an inventory of these shops every year, valuing them based on the current wholesale price in the market, and I pay zakah on this basis. I have asked some students of knowledge about my method, and they differed on it. Some approved of my action, while others said: The method of valuation should be based on the current value of the goods at the wholesale price, plus the expected profit from their sale. The disagreement was over the expected profit. The proponents of the first method told me: One of the conditions of zakah is ownership, and this profit is expected, still in the realm of the unseen, and it is not owned. It may not come to pass. So I ask you to guide me to the method of valuation and calculating zakah in detail.
A1: It is obligatory to value the goods prepared for sale at their current price when the lunar year of possession is completed, whether they reach the capital for which they were bought, or fall below it, or exceed it at the time of valuation.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.