A man has a factory that buys raw materials and sells parts; how does he pay the zakah on his wealth?

The questioner : Now, some people have a factory, for example, where they produce parts and sell them before the lunar year has completed, but they buy raw materials with the proceeds to manufacture these parts.

The Shaykh : No, he pays the zakah on his wealth at its due time. All wealth is subject to zakah at its due time. So, whatever he has at the time when the zakah becomes obligatory, he pays zakah on it, whether its value has increased or decreased.

The questioner : But if he sells them before the lunar year completes, and pays the zakah, that is...

The Shaykh : He pays the zakah on them, because when he sells them, their replacement comes to him. Unless he sells them for something that is not subject to zakah, such as if he sells them for a car that he uses. In that case, the lunar year is broken and he owes no zakah.