Zakat Questions and Answers
Muhammad Amin owns a shop that sells menswear. When the time comes to pay zakat, he estimates the value of the stock in his shop by calculating how much he would get if he were to sell the entire stock to a single buyer. He then pays 2.5% of that in zakat.
How do I calculate the value of stock in my shop?
The value of the stock in your shop is its market value, not the buying price. It is permissible to calculate this by estimating how much you would expect to receive if you sold the entire stock at once to a single buyer.