Q: I was wondering how would I calculate my Zakaat on my business stock. I have a shop on eBay. When calculating the value of my assets:
1. Do I calculate the market value or the sale value.
2. Do I minus eBay and PayPal fees.
3. Do I minus vat.
4. Do I minus delivery costs. These fees and costs will obviously only be incurred upon the sale of the items.
الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب
A: Zakat is payable on the sale value of the market you are in. Therefore, you should value your stock on the selling price on the platform of eBay as opposed to what it may be sold for on the high street. You cannot deduct fees and costs that will be incurred in the future in the event of a sale, but you can deduct fees and costs that have already been incurred and are still outstanding. You can deduct VAT for items already sold for which you have not yet made VAT payment as this is a tax that has already been incurred.