Question: Is there Zakaat on Value-Added Tax (V.A.T.)?

Answer:  V.A.T. belongs to the government and not to an owner of a business. A businessman collects it on behalf of the government, therefore, it will be considered as an amanat (trust). According to the Shari'ah the person who has a trust is NOT required to pay Zakaat on this trust. Hence, there will be no Zakaat on V.A.T.

AND ALLAH KNOWS BEST

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