Zakat on Sole Traders
Sole traders pay Zakat on business cash, stock, and receivables. Business equipment and property are not zakatable.
If you are a sole trader, Zakat is due on your business's zakatable assets: cash, inventory, and money owed to you. Equipment and premises are not zakatable.
What Is Zakatable for Sole Traders?
Cash
stock
and receivables.
As a sole trader, calculate Zakat on: (1) cash in business accounts, (2) inventory/stock, and (3) money customers owe you (receivables). Add these to your personal wealth and pay 2.5% if above nisab.
Keep Good Records
Accurate bookkeeping makes Zakat calculation much easier. Know your cash, stock, and receivables on your Zakat date.