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Zakaah on Amazon fba business

Fatwaa ID: 2203

Question:
AoA Mufti Sahab.

Can you please guide me regarding Zaqat on Amazon FBA business. It is on retail model.

Inventory is bought all year round on different price. Selling price is also not fixed. Also, sometimes inventory is sold on loss. Business account is on rolling as money usually doesn’t stay in the account for long. Amazon takes hafty fees as well. We have variable inventory at FBA warehouse and cash in bank account.

What should I count as Zaqat applicable and how to calculate it?

Answer:
In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

May Allaah Ta’aala place barakah in your business.

The goods or items one sells on Amazon through the FBA model is regarded to be trade goods. Trade goods are subject to zakaah. One’s selling price of the items on the zakaah date will be considered when assessing for zakaah. If for some reason one cannot conclude a selling price, then the fair market value in that sector will be considered. The cash of the business on the zakaah date will also be added to the calculation. Both, the selling price of the goods as well as the cash in the account, will be added together to determine the total amount payable for zakaah. Any immediate expenses and/or liabilities may be deducted.

It should be noted that there is no separate zakaah date for the business account. The zakaah for the business will be added along with one’s personal zakaah.

And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York
https://askthemufti.us/

08/25/1445 AH – 03/06/2024 CE | AMG3-4424

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين

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