---
title: "What is Zakah on trade goods? | IslamicOpenFinance™"
description: "Zakah on assets held for sale, which are valued and counted towards the zakah base and the nisab."
url: https://islamicopenfinance.com/glossary/zakah-on-trade-goods/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Social finance and zakat](https://islamicopenfinance.com/glossary/#social)

Social finance and zakat

# Zakah on trade goods

Zakah on assets held for sale, which are valued and counted towards the zakah base and the nisab.

Trade goods, called urud al-tijarah, are assets held for the purpose of sale. AAOIFI's zakah standard includes assets prepared for trading, such as goods, financial papers and real estate held for sale, among zakatable assets in the net assets method, and applies the nisab to articles of trade after they are valued. Assets held for use rather than sale, such as premises and equipment, are treated differently. For businesses, the classification of each asset as held for sale or held for use is therefore the key input to any zakah calculation.

## Sources

- [AAOIFI Shari'ah Standards, English edition (full text, PDF): Shari'ah Standard No. 35, Zakah, items 2/1/1 and 3/2/2](https://aaoifi.com/wp-content/uploads/2017/12/Shariaa-Standards-ENG.pdf)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Zakat** An obligatory annual contribution on qualifying wealth above a minimum threshold, paid to specified categories of recipients.](https://islamicopenfinance.com/glossary/zakat/) [**Zakat base** The pool of qualifying wealth on which zakat is calculated, after including zakatable assets and deducting what the method allows.](https://islamicopenfinance.com/glossary/zakat-base/) [**Nisab** The minimum amount of wealth above which zakat becomes due; for money it is set by reference to gold or silver.](https://islamicopenfinance.com/glossary/nisab/) [**Hawl** The full lunar year for which qualifying wealth must be held above the nisab before zakat becomes due on it.](https://islamicopenfinance.com/glossary/hawl/) [**Net assets method (zakah base)** AAOIFI's method of computing an institution's zakah base: zakatable assets minus specified liabilities and rights.](https://islamicopenfinance.com/glossary/zakah-net-assets-method/)

**Social finance and zakat**

1. [Zakat](https://islamicopenfinance.com/glossary/zakat/)
2. [Nisab](https://islamicopenfinance.com/glossary/nisab/)
3. [Waqf](https://islamicopenfinance.com/glossary/waqf/)
4. [Sadaqah](https://islamicopenfinance.com/glossary/sadaqah/)
5. [Qard hasan](https://islamicopenfinance.com/glossary/qard-hasan/)
6. [Zakat recipients (asnaf)](https://islamicopenfinance.com/glossary/zakat-recipients/)
7. [Cash waqf](https://islamicopenfinance.com/glossary/cash-waqf/)
8. [Nazir (waqf trustee)](https://islamicopenfinance.com/glossary/nazir/)

[All 221 terms](https://islamicopenfinance.com/glossary/)