Inventory and trade goods
Whatever the business holds to sell — stock, goods, raw materials — is zakatable at its market (sale) value on your zakat date, not what you paid for it. Use the price you could realistically sell it for today.
Fixed assets are exempt
The machinery, tools, premises, and vehicles the business uses to operate are not zakatable. Zakat falls on wealth held for sale and growth, not on the productive base you work with.
The same logic appears in personal zakat: your own home is not zakatable, while property held for resale is zakatable at market value. For rental property, the building is not zakatable — the rent you have saved is.
Money owed to the business
Receivables follow the good-debt / doubtful-debt rule: money owed to you is zakatable if you expect to receive it. If payment is genuinely doubtful, the majority view is to pay zakat when you actually receive it, for one year — not before.
Inventories of agricultural produce and livestock are a separate subject with their own rates; this guide — and the wealth-zakat calculator — do not cover them beyond noting they exist.
A worked example (illustrative numbers)
A shop holds inventory with a current sale value of $8,000 and is owed $2,000 by customers it expects to pay. The till holds $500, and the delivery van and shelving are fixed assets — ignored. No immediate debts.
Zakatable total: $8,000 + $2,000 + $500 = $10,500. Zakat: 2.5% × $10,500 = $262.50.
Frequently asked questions
Is my business stock zakatable?
Yes. Business inventory and trade goods are zakatable at their market (sale) value on your zakat date — what you could sell them for now, not what you paid.
Do I pay zakat on my business equipment?
No. Fixed assets used in the business — tools, premises, vehicles — are not zakatable. Only wealth held for sale, plus cash and receivables you expect to collect, enters the calculation.
What about money customers owe me?
Money owed to you is zakatable if you expect to receive it. If the debt is doubtful, the majority view is to pay zakat on it when received, for one year.
Is commercial property I rent out zakatable?
The building itself is not zakatable. The saved rent is: it is cash in the bank by your zakat date. Property held for resale, by contrast, is zakatable at market value.