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The Utility of the Product taxes

The production of goods or services gives rise to the application of production tax. Taxes on products and other taxes on production make up this type of tax.

Definition of production tax

The production tax is a compulsory payment made by public administrations or institutions of the European Union. The use of the tax software for tax preparers is highly appreciated there.

Its characteristics are as follows:

  • it concerns the production and import of goods and services as well as the employment of labor
  • it also affects the use of land and other goods used for the purpose of “producing”
  • it is due by the taxpayer regardless of the amount of profits made
  • it is paid in cash or in kind
  • it is paid without any consideration for the taxpayer

Good to know: there are two types of taxes on production: taxes on products and other taxes on production.

Production tax and product taxes


The ‘ tax on products is a levy payable during the production of a good or service. It is its production or its marketing which generates the tax liability.

It is thus a tax paid by the consumer on occasion:

  • a sale of goods
  • the production of a service or a good
  • the collection of income from shares or shares

Good to know: the main taxes on products are VAT (value added tax), transfer duties for payment, internal tax on petroleum products and duties on alcohol).

Who is concerned?

Product tax concerns all operations of production of goods and services. The person liable for this tax is very generally the final consumer:

The VAT on production of a product is actually paid by the final consumer when purchasing the goods. The internal tax on petroleum products and the duties on alcohol are paid by the end consumer when purchasing fuel or alcohol.

Good to know: taxes on products are generally indirect taxes: they are borne by the final consumer but paid to the Public Treasury by the company’s marketing the product or service.

Other taxes on production

Other taxes on production include all other compulsory levies paid by companies as a result of their production activity. These types of taxes are calculated regardless of the number or price of goods and services produced and marketed.

They therefore concern the use of land or premises (this is the case of the territorial economic contribution), assets held (property tax), labor (payroll tax), the use of vehicles of company for production purposes and international transactions.

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