Trade goods
In one sentenceEverything a person or business owns with the intention of selling at a profit, such as merchandise, goods and real estate held for trade; Zakat is due on its value when the hawl completes.
Simply put
What counts is the intention: a car the showroom owner uses to get around is not a trade good, but the cars displayed for sale are.
An individual values trade goods at their value when the hawl completes and adds them to his cash, while a business's inventory enters its Zakat base under ZATCA rules.
Worked example
An individual perfume trader whose hawl has completed holds goods displayed for sale and cash in his account, and their total is above the nisab.
Value of goods when the hawl completes120,000 SAR
Cash30,000 SAR
Total120,000 + 30,000 = 150,000 SAR
Calculation150,000 × 2.5%
Zakat due3,750 SAR
Don't confuse it with
Zakat base deductionsWhat is acquired for use is deducted from the base, while what is displayed for sale is subject to Zakat.