VAT amount being included when calculating zakaat
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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