Mufti Online — Madrasah Ta'leemuddeen

VAT amount being included when calculating zakaat

· 10 Jumada II 1445 AH1 min readEnglish

Question

With regards to the valuation of stock for zakaat purposes, I'm aware that we value it at market value. However in that market value is it excluding or including VAT.

Answer

Whatever is the price that the common person generally pays for the item in the market, one will pay 2.5% zakaat on that entire value (i.e. the value inclusive of the VAT amount).

And Allah Ta'ala (الله تعالى) knows best.

Answered by
Mufti Zakaria Makada
Checked & approved by
Mufti Ebrahim Salejee (Isipingo Beach)
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Source: Mufti Online — Madrasah Ta'leemuddeen — https://muftionline.co.za/node/34421
Fatawa SA: https://fatawa.co.za/fatwa/muftionline-34421

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