Question:

In this country, financial transactions are made with a sales tax (VAT). So, will one add the VAT when calculating the price of gold and silver for paying Zakat and Mahr Fatimi and when calculating the nisab for Qurbani (Udhiyah/Sacrifice)?

Answer: حامدا ومصليا ومسلما

If the sales tax is considered part of the price and without it financial transactions cannot be made, then it will also be taken into consideration when fixing the price. If one is paying Zakat and Mahr Fatimi and one is fixing the nisab of Qurbani (Udhiyah/Sacrifice) based on their prices, then it (tax) will be counted in the prices. This is because all those factors which cause an increase or decrease in value is taken into consideration when determining a price.

However, if someone has gold or silver itself, then its weight is taken into consideration.

And Allah Ta’ala knows best.

 (Hazrat Mufti) Ahmed Khanpuri (May Allah preserve him.)

Mahmoodul Fatawa Vol.5 Pg.434