Zakat on stock from supplier

Question:

If someone has taken a lot of stock from his supplier but hasn’t paid for it. He sells as much of the stock as he can and gives back the rest to the supplier. And then pays for the stock that he managed to sell. What is zakaatable in this scenario?

Answer:

بسم الله الرحمن الرحيم

One of the conditions for Zakat to be obligatory is to have complete ownership of the wealth.

In the above scenario the shop owner doesn’t have the complete ownership of the stocks therefore zakat is not obligatory on it. He has to pay Zakat on savings after selling the products.

قال الإمام علاء الدين الكاساني في بدائع الصنائع: وأما الشرائط التي ترجع إلى المال فمنها: الملك فلا تجب الزكاة في سوائم الوقف والخيل المسبلة لعدم الملك وهذا؛ لأن في الزكاة تمليكا والتمليك في غير الملك لا يتصور۔
ومنها الملك المطلق وهو أن يكون مملوكا له رقبة ويدا وهذا قول أصحابنا الثلاثة۔

Allah knows best
Syed Hussain ibn Imamuddin
11 Ramadan 1441 / 4 May 2020

Approved by: Mufti Abdur Rahman (Hafizahullah), Shaykh ul Hadith of Esha Atul Islam, Ford Square, London