The Ruling on Zakah on Goods Held for Trade

Question:
We own a commercial shop and we are suffering a significant loss in it. Is zakah on goods held for trade obligatory upon us?

Answer:
If the goods in it are for trade, to be sold, then their zakah is obligatory upon you. As for the shop that is prepared for selling, it is not prepared to be sold itself; it is not sold. It is a house for selling or a shop for selling; there is no zakah on it. However, the goods in it that are for sale are what are called goods held for trade, and they are subject to zakah whenever the lunar year has passed. You determine their value and pay zakah on it. As for the house or shop itself that is prepared for selling, there is no zakah on it, because it is prepared as a container for selling, not for being sold itself. It is not sold, but the goods are placed in it. If it is prepared for placing goods in it for sale, and as for the shop itself, it is not prepared for sale, so there is no zakah on it, because it is not intended for sale; rather, the goods are placed in it. So the goods that are prepared for sale are called goods held for trade, and zakah is due on them. Yes.

The presenter : May Allah reward you with good and do you good.