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Zakat on business stock query

Answered according to Hanafi Fiqh by IslamicPortal.co.uk

Zakat on business stock query

Question

I sell personalised baby clothes from home. My question is if I have to give zakat on my stock (I buy in bulk to keep price low) and calculate according to the retail value, how would I take in to account personalisation because there is variation in price according to client preferences. The stock is only personalised when I get an order otherwise it is blank. Is it enough to work out Zakat on the blank stock?

بسم الله الرحمن الرحیم

Answer

Zakat will be calculated based on the market value of your stock on your Zakat anniversary. The market value is the amount for which something can be sold easily. Therefore, if your stock is not personalised on your Zakat anniversary, the stock will be valued accordingly. Likewise, if it is personalised, it will be valued accordingly. What matters is the market value of the stock as it is on the Zakat anniversary.

Allah knows best

Yusuf Shabbir

22 Ramadan 1442 / 4 May 2021

Approved by: Mufti Shabbir Ahmed and Mufti Muhammad Tahir

This answer was collected from IslamicPortal.co.uk, which is a repository of Islamic Q&A, articles, books, and resources. Various schools write and oversee the answers, including Maulana Yusuf Shabbir, Mufti Shabbir Ahmed, and Mufti Muhammad Tahir. 

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