VAT amount being included when calculating zakaat

Q: With regards to the valuation of stock for zakaat purposes, I'm aware that we value it at market value. However in that market value is it excluding or including VAT.

A: Whatever is the price that the common person generally pays for the item in the market, one will pay 2.5% zakaat on that entire value (i.e. the value inclusive of the VAT amount).

And Allah Ta'ala (الله تعالى) knows best.

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)