Zakat on Business Inventory

Value trade goods at selling price and include business cash.

Use the Zakat Calculator

Business inventory held for sale is zakatable. The typical approach is to value stock at its selling price and include trade receivables.

Quick answer

  • Include trade goods, business cash, and receivables.
  • Use fair selling value, not cost price.
  • Deduct short-term business debts if applicable.

How to calculate

  1. Estimate current selling value of inventory.
  2. Add business cash and accounts receivable.
  3. Subtract debts due within the year if allowed.
  4. Apply 2.5% if above Nisab.

Common mistakes

  • Using cost price instead of selling value.
  • Ignoring receivables from customers.
  • Including fixed assets like equipment or vehicles.
Use the calculator to estimate business Zakat.

FAQ

Do I include business equipment?

No. Fixed assets used in operations are generally not zakatable.

What about slow-moving stock?

Value it at realistic selling price, even if discounted.

Are unpaid invoices zakatable?

Yes, receivables are usually included if likely to be collected.

Related guides

Zakat on Cash and Savings

Include all cash on hand, savings, and digital balances in Zakat.

Zakat on Debts and Loans

Learn which debts reduce your net Zakatable wealth.

Zakat on Stocks and ETFs

Calculate Zakat on shares based on market value and intent.

How to Calculate Zakat

A simple step-by-step guide for calculating your Zakat.

More resources: FAQ and About Zakat.