Turnover tax

A turnover tax is a levy charged on goods when they have been manufactured, rather than when they are sold. The manufacturer typically rolls the cost of the tax into its pricing for the goods, so the final customer eventually pays the tax. Turnover tax is most commonly applied to intermediate goods and fixed assets, so it is more targeted than a value-added tax.

This type of tax is not frequently used; governments are more likely to use the value-added tax concept, which can be applied more broadly.