He has an internet café – how should he pay zakaah on it?
Question I own a shop that provides internet services for university students and others. I have completed a year since I bought it. I do not know how to pay the Zakat on its earnings. And as you know, the shop that provides such services is not selling actual goods. It offers services which we…
Question
Praise be to Allah.
Firstly:
The goods that are found in
business premises are of two types:
1 – Things that are
prepared for sale, such as tools, clothing and so on. These are subject to
zakaah because they are trade goods.
2 – Things that are
prepared for use and not for sale, such as manufacturing equipment, office
furniture, photocopiers and computers that are not for sale, rather they are
to be used by the employees or workers. There is no zakaah on these, rather
zakaah is to be paid on the money that they bring in.
Secondly:
Once it is known that
zakaah is only due on the profits that result from the what the company owns
of equipment, tools and furniture – then in order for zakaah to be due on
the profits, they must reach the nisaab (minimum threshold) and one year
must have passed. The nisaab is the equivalent of 85 grams of gold. If one
year has passed but the profits did not reach the nisaab, or they reached
the nisaab but you disposed of them before one year had passed, then no
zakaah is due on them.
Thus it is clear that there
is no zakaah on the equipment that you own, and there is no zakaah on the
capital that you put into the café. Rather zakaah is due on the money that
has been earned, if it reaches the nisaab and one year has passed. But if it
was spent before the year passed, then you do not have to pay zakaah.
If the money (accumulated
from the profits) decreases but it does not become less than the nisaab,
then you should pay zakaah on what is left after one year has passed.
And Allaah knows best.
