Zakat on Trade Merchandise

প্রশ্ন · Question

I mean, the zakat on trade merchandise is the value of the commodity
offered for sale, the value of selling it from the payer of zakat to his
customers, not the value that the payer of zakat buys it with!

If I bought 10,000 mobile devices and sold them for 15,000. Zakat is
from the 15,000.
Is this correct?!

উত্তর · Answer

In the Book of Funds: [Zakat on Trading merchandise
Trade merchandise is everything other than currency which is used for
trading, buying and selling, for the sake of profit e.g. foodstuffs,
clothing, furniture, manufactured goods, animals, minerals, land,
buildings and other goods that are bought and sold.
Zakat is obliged on merchandise taken for trade by the agreement of
the early and latter scholars. From Samura b. Jundub who said:
«نْ نُخْرِجَ الصَّدَقَةَ مِنَ الهذِي نُعِدُّ لِلْبَيْعِ
َ
مُرُنَا أ
ْ
مَّا بَعْدُ، فَإِنَّ رَسُولَ اللَّهِ ﷺ كَانَ يَأ
َ
أ»
“See! Verily the Messenger of Allah used to command us to give
Sadaqah on what we prepared for sale” (narrated by Abu Dawud).
Abu Dharr narrated from the Prophet who said: «وَف ِي الْيَْ ر صَدَقَتُهُ » “There
is Sadaqah in Bazz.” Narrated by Al-Daraqutni and Al -Bayhaqi. Al-Bazz
are clothes and woven material used for trading. Abu ‘Amra b. Hamas
narrated from his father who said: “‘Umar ibn Al -Khattab passed by
and said: ‘O Hamas, pay the Zakat on your property’. I said: ‘I don’t
have any property except for Ji’b (quivers) and leather’. He said:
‘Estimate them, then pay their Zakat.’” AbdurRahman b. Abdul -Qari
said: “I was appointed over Bait ul -Mal in the time of ‘Umar ibn Al -
Khattab. When the gifts were given out, the wealth of the traders was
collected and counted, of what was present or absent. Zakat was then
taken from the present wealth for what was present and absent.”
From ibn ‘Umar who said: “There is Zakat on Raqeeq (slaves) and Bazz
suits upon which trade is intended.” The obligation of Zakat on trade
has been narrated from ‘Umar and his son, ibn Abbas, the seven
jurists, Al-Hassan, Jabir, Tawus, Al -Nakhai, Ath-Thawri, Al-Awzai, Ashl-

Shafii, Ahmad, Abu Ubaid, the people of the opinion (Ashab ar -Rai),
Abu Hanifah and others.
Zakat on trading merchandise is obliged when it reaches the Nisab
value of gold and silver, and a year has passed over it.
If the trader begins his trade with property less than the Nisab then it
reaches the Nisab at the end of the year, there is no Zakat upon it
because a year has not passed over it. Zakat will be obliged on its
Nisab after a full year has passed over it.
If the trader begins his trade with property above the Nisab such that
he begins his trade with 1,000 Dinars then his trade grows and profits
by the end of the year so that its value becomes 3,000 Dinars, it is
obligatory upon him to pay Zakat on 3,000 Dinars not the 1,000
Dinars he started with. This is because its profit follows it i.e. the
origin, and the period of one year of generated profit is the same as
the period of one year of the origin. This is like, the goats’ offspring
(Sikhal), and offspring of sheep (Baham), that are counted together
with them, because their period of one year (Hawl) is that of their
mothers. Similar to this is the profit on wealth so its time (Hawl) is the
period of one year of the origin from which profits were derived.
When the year finishes the trader estimates his trading merchandise
whether Zakat is obliged upon it because of itself such as camels,
cattle, and sheep, or not, such as clothes, manufactured products, land
and buildings. He estimates them collectively in gold or silver units.
He then gives quarter -tithe if it reaches the Nisab value of gold or
silver, giving the obligatory Zakat in the used currency.
It is allowed for him to give its Zakat from the merchandise itself if that
is easier for him, e.g. where he is trading with sheep/goats, cattle or
clothes and the value of the Zakat obliged upon him is estimated in
sheep, cattle or clothes, he may give its Zakat in currency or he may
give it in sheep, cattle or clothes i.e. he may give whichever he wishes.

Zakat on trading merchandise, on whose assets Zakat is due like
camels, cattle and sheep/goats, is paid as Zakat of trading
merchandise, not as Zakat of livestock. This is because trade is
intended in their ownership, not mere possession...]. END.
Thus, the trade is estimated at the beginning, and if it is the nisab or
more, this is counted as the beginning of the year and at the end of the
year it is done again, then its zakat is paid according to the estimation
when zakat is due, and as mentioned above, the profit is included
when calculating the value of the trade even if one year has not
passed, because the profit is related to the capital.
That is, the trade estimation is at the beginning of the nisab, then
after the end of the year from the beginning of the nisab, that is,
when zakat is due.
I hope this is enough, and Allah is All-Knowing and Most Wise.
Your brother,
Abu Yasin