Zakah is obligatory on money, whether

Q: I have a car spare parts shop, but I did not have enough money to cover all the costs of the shop. So I went to a big spare parts dealer and bought some spare parts from him on account (i.e. as a loan), for about 100,000 Saudi riyals. I have repaid him 60,000 riyals and the balance of the debt is now about 40,000 riyals. Should I add the 40,000 riyals that I owe as a debt to my annual inventory of the shop for the obligatory Zakah, or what should I do? Please, answer me.Note: Every year I am required by the state to pay a specified sum of money to the Department of Zakah and Income Tax, but this sum does not equal the amount of Zakah I should pay on my wealth. Should I deduct this sum from the amount of Zakah due on my wealth? For example, if the Zakah due on my wealth is 1,000 riyals and I pay them 200 riyals as Zakah, there will be 800 riyals left from the Zakah due on my wealth. Can I deduct these 200 riyals or should I pay the whole amount of Zakah? Please answer me, may Allah bless you!

A: Firstly, you must pay Zakah on all the wealth you have, both on the cash and the goods you have for sale after having them for a complete lunar year, if their value (Part No. 9; Page No. 314) is over the Nisab (the minimum amount on which Zakah is due). This includes the 40,000 riyals that you owe, because being in debt does not exempt you from paying Zakah. Secondly, the money you pay, intending it to be Zakah, to the Department of Zakah and Income Tax, is a legitimate payment of Zakah.May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.