Trade Zakat

The obligatory amount of Zakat on trade goods is one quarter of a tenth of the total value, and this is the consensus of the four schools of thought: Hanafi, Shafi'i, Maliki, and Hanbali, which have unanimously agreed upon it. This is done by evaluating the cash equivalent of the goods, and the Nisab (minimum amount for Zakat eligibility) of trade goods is like the Nisab of cash money, and the amount of Zakat is the same, by consensus of the scholars. The value of Zakat is calculated using the following formula, a traditional equation from our predecessors: Zakat amount = (Cash + value of goods + expected receivables - what is owed in debts) × 2.5%, or = (Cash + value of goods + expected receivables - what is owed in debts).