Zakat on Dropshipping Business

Everyday Islamic Finance Business and Career Questions
#1

Assalamualaikum,

I have an Amazon FBA business. It’s been exactly one year since i launched it but i only started trading a few months later.

I now own stock and products are selling. I assume i should calculate zakat on the cash in the bank, plus any stock in the warehouse/transit at the retail value (not cost price).

However, i invested alot of my own money into the business and see this as a debt to myself which i need to pay back - does this change anything in terms of the zakat i need to give?

On a personal level - do i need to give zakat on money that i have leant?

Jazakallah

#2

Wa alaykum salaam,

You will pay Zakat on your cash and all the stock you have.

Yes, you will need to pay Zakat on the money you have lent to others as well.

#3

Jazakallah for replying!

#4

One more question, do I need to pay zakat on goods which I’ve purchased from my supplier but not yet shipped. And what about goods I’ve paid for and that are on their way?