Zakat Expert

Q: as online retailer we get money full upfront from customer and we deliver the goods in few 2 weeks time and after deliver we pay to supplier. so do we need to pay Zakat on this deposit money?

A: You will pay Zakat on the market value of the furniture ordered for the customers. Even if the money hasn’t been received fully you will still be liable to pay Zakat on the full value of the furniture. Money that you owe to your suppliers can be deducted from your Zakat calculation.
As an example: someone ordered an item worth £1000. The person paid £200 up front. On your Zakat day you will pay Zakat on the full value of the item i.e. £1000. There will be no need to pay another Zakat on the £200

And Allah knows best!

Mufti Billal Omarjee

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