Can a Shopkeeper Use His Zakat to Clear His Client’s Outstanding Debt?

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Question: 

Assalaamu alaykum

Respected Mufti Saheb

“A” had purchased some car parts worth R6 000.00 and put them in his car. The transaction was a credit one, and he said he would pay later. It had come to the seller’s attention that “A” is eligible to receive Zakaat and he is unable to pay for the parts due to his financial situation.
Can the seller take zakaat money that he is going to discharge, and use it to pay for the amount “A” is owing him? Would this be correct?

Answer:

In the Name of Allah, the Most Gracious, the Most Merciful.

As-Salāmu ʿAlaykum Wa-Ramatullāhi Wa-Barakātuh

In principle, if a person forgives a debt in lieu of zakāt, the zakāt will not be discharged. Therefore, in the scenario under discussion, the creditor should first hand over the zakāt amount to the debtor, thereby transferring ownership to him, and then advise him to repay his debt.
Note: It is not necessary to inform the debtor that the amount given is from zakāt funds. [1]

And Allah Taʿāla Knows Best.

Baba Abu Bakr

Student Darul Iftaa

Accra, Ghana

Checked and Approved by

Mufti Muhammad Zakariyya Desai