زَكَاةُ عُرُوضِ التِّجَارَةِ

Merchandise (ʿuruuḍ at-tijaara) Any item bought with the intention of reselling it for a profit is merchandise, subject to zakaat at 2.5% of its value, according to the great majority of scholars. Samura ibn Jundub reported that the Prophet ﷺ used to order them to pay charity on what they prepared for sale (Abu Daawuud 1562) [À VÉRIFIER : numéro et degré]. Scholars also rely on 2:267 ("spend of the good things you have earned") and on the practice of 'Umar [À VÉRIFIER : référence]. Two conditions: the intention to sell at the time of purchase (or later, according to some), and acquisition by purchase (not an inheritance or a gift, according to several schools) [À VÉRIFIER].

What counts and what does not For a business, on the zakaat day, one adds up: • the stock intended for sale (merchandise, raw materials that go into the product sold); • the business's money (till, accounts); • secure customer receivables. One subtracts: • the business's short-term debts (suppliers, the month's rent, wages owed), according to the position that deducts debts (lesson 4). One does not count: • capital goods used for working: premises, shelves, refrigerators, machines, delivery vehicles, computers, software.

How to value the stock? The majority require the market value on the zakaat day, not the purchase price. Contemporary scholars discuss whether this means the price at which you could resell the stock wholesale today, or the retail price; many adopt the wholesale price (what the stock would be worth if sold all at once) [À VÉRIFIER : avis du centre]. Unsaleable or expired stock is counted at its real value, sometimes zero.

Example: a small grocery store On the zakaat day, Yusuf's grocery has: • stock valued at wholesale price: $38,000; • till and business account: $9,500; • receivables from a restaurant customer who pays reliably: $2,500; • supplier invoices due this month: $11,000; • equipment (refrigerators, shelves, van): not counted. Total: 38,000 + 9,500 + 2,500 − 11,000 = $39,000; zakaat: 39,000 × 2.5% = $975. If the grocery has several partners, each pays on his share, or the business pays for all if the partners agree. For a self-employed person selling a service (consultant, electrician, driver), there is no stock: his money, his accounts and his secure customer invoices go into his ordinary calculation.

Real estate • The home you live in: no zakaat, even if it has gained a lot of value. • A property you rent out: no zakaat on the value of the property according to the great majority; rents received are added to your money and counted on the zakaat day if they are still there. Some contemporary scholars propose zakaat on net rental income upon receipt, by analogy with harvests [À VÉRIFIER : présentation]. • Land or a condo bought to be resold (speculation, renovation for resale, "flipping"): it is merchandise. One pays 2.5% of its market value every year. • Land kept without a clear intention, or to build one's home on: no zakaat according to the majority. • If the intention changes (you decide to sell a property you were renting out), several schools consider that it becomes merchandise from that moment, others require an act of trade [À VÉRIFIER].

A point of ethics Trade is blessed when it is honest: "The seller and the buyer have the option as long as they have not separated; if they speak the truth and make things clear, their sale is blessed; if they conceal and lie, the blessing of their sale is wiped out" (Bukhari 2079, Muslim 1532). A business's zakaat is part of this honesty: declaring one's stock to Allah as one would declare it to a partner.

The text: Surah Al-Baqara (2), verse 267 يَا أَيُّهَا الَّذِينَ آمَنُوا أَنْفِقُوا مِنْ طَيِّبَاتِ مَا كَسَبْتُمْ وَمِمَّا أَخْرَجْنَا لَكُمْ مِنَ الْأَرْضِ ۖ وَلَا تَيَمَّمُوا الْخَبِيثَ مِنْهُ تُنْفِقُونَ وَلَسْتُمْ بِآخِذِيهِ إِلَّا أَنْ تُغْمِضُوا فِيهِ ۚ وَاعْلَمُوا أَنَّ اللَّهَ غَنِيٌّ حَمِيدٌ ﴿٢٦٧﴾

Meaning: "O you who believe! Spend of the good things you have earned and of what We have brought forth for you from the earth. Do not seek out the bad to spend from it, when you yourselves would only accept it with your eyes closed. And know that Allah is Self-Sufficient, Worthy of praise." "What you have earned" (maa kasabtum) is understood by many as the gain of trade, and "what We have brought forth from the earth" as harvests (lesson 7).

Arabic text: Tanzil Quran Text (Simple, version 1.0.2), © 2008-2010 Tanzil.net, Creative Commons Attribution 3.0 licence, reproduced without any change (http://tanzil.net). Each verse is on its own line, followed by its number; the basmala, which the Tanzil file places at the start of the first verse, is written on its own line.

Understanding the lesson

Explanation Zakaat distinguishes two uses of the same asset: what is used (a tool, a home, a van) and what circulates to produce a profit (merchandise). The first is not subject to zakaat; the second is, at its value on the day. This is why intention matters: the same condo is a home, a rental property or merchandise depending on what you do with it. This rule is fair to the trader: he does not pay on his work tools, which produce nothing by themselves, but on what makes up his available wealth. It is fair to the poor: a large stock does not escape zakaat because it has not yet become money. Verse 2:267 adds a moral dimension: do not give the worst of what you have. Valuing one's stock honestly, without underestimating it, is part of this requirement.

Lessons to draw from it • If you have a business, take an inventory on the zakaat day, as for year-end accounting. • Separate in your accounts the equipment (not counted) and the stock (counted). • For real estate, clarify your intention for each property: live in it, rent it, resell it. • Count the rents received that are still available on the zakaat day. • For a business with several partners, agree in writing on who pays the zakaat.

Key points to remember • Merchandise = an asset bought for resale: 2.5% of its value on the zakaat day. • Counted: stock, business money, secure receivables; short-term debts are subtracted. • Not counted: premises, equipment, work vehicles. • Home lived in and rented property: no zakaat on the value; rents are added to money. • Real estate bought to be resold: merchandise.

The main message What you use to live and work is not subject to zakaat; what you circulate to earn is: value it honestly every year.