Zakat on Goods Bought but not received

Everyday Islamic Finance Business and Career Questions
#1

Assalamualaikum, do I need to pay zakat on goods which I’ve purchased from my international supplier but which have not yet shipped.

And what about goods I’ve paid for and that are on their way?

#2

Wa alaykum salaam,

Yes, Zakat is due on such goods in both instances.

Allah knows best

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#3

Jazakallah for the reply.

What about paying zakat on items where 50% deposit has been paid and they are currently being manufactured.

Also, since i’m paying zakat on retail price of stock i hold, do i need to take into account the Amazon fees that are fixed - so for example, if the product will retail at £95 and Amazon will take 25 - do i pay zakat on that full 95?

Also, can you please shed light on how to deal with paying zakat if you deal in more than 1 currency, or if i hold cash in more than one currency.

Jazakallah

#4

Brother, you should add references as well when you say something. That will be more helpful and satisfying for us.
btw that you for helping us and giving your precious time to answer us. appreciated!

#5

Wa alaykum salaam,

  1. Are you buying the manufactured items to resell, if so, you will pay Zakat on the current value of such assets.

  2. For items which are solely marketed on amazon only, you can deduct the fees from the retail price and pay accordingly.

  3. Convert the currencies into one currency on your Zakat due date, and pay 2.5% of the value.

Allah knows best

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#6

Jazakallah Khair for your reply.

Zainab

#7

Assalamualaikum Mufti,

Just having thoughts again - going back to my question about paying zakat on goods purchased for resale but not received - I haven’t held this stock for a year so why would I be paying zakat on this.

I thought we pay zakat on wealth (including business stock) which we have held for a year.

Even stock that I may have received and has started selling, if I haven’t held this for a year, should I be paying zakat on it?

Look forward to your reply.

Zainab

#8

Wa alaykum salaam,

It is not necessary to hold stock for an entire year. That is applicable in the first time you have a Zakat anniversary. Thereafter, whatever you have on your Zakat year end will be Zakatable.

Allah knows best

#9

Brilliant, jazakallah, that’s clear and makes sense.

Alhamdulillah.