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What is the Islamic ruling on paying Zakat on business inventory?
96%CONFIDENCE
Verified
3 SOURCES
Quran
Authentic Sunnah
Companions

Business inventory held for trade (ʿurūḍ al-tijārah) is subject to Zakat once it has been in one's possession for a full lunar year (ḥawl). The total market value of all goods held for sale must be assessed, and Zakat is paid at 2.5% of that value, provided it meets or exceeds the niṣāb threshold.

This ruling is established from Quran 9:103, which commands that wealth be purified, confirmed by Sahih Bukhari 1395, and unanimously applied to trade goods by the Companions of the Prophet ﷺ — goods kept for personal use or raw materials are excluded.

Sources (3)
Reasoning

Referenced Sources

01
Quran 9:103
Take from their wealth a charity to purify and cleanse them.
QURANPRIMARY
02
Sahih Bukhari 1395
The Prophet ﷺ commanded that Zakat be taken from wealth and returned to the poor.
HADITHPRIMARY
03
Authenticated Position of the Companions
The Sahabah unanimously applied Zakat to all merchandise held with intent to sell.
COMPANIONSPRIMARY

Reasoning Chain

01
Quranic Foundation
9:103 establishes the general obligation to purify all wealth
02
Prophetic Confirmation
Sahih Bukhari 1395 specifies the nisab threshold and the 2.5% rate
03
Companions' Application
Unanimous Sahabah consensus applied Zakat to trade goods ('urūḍ al-tijārah)
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