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The US Medical Device Excise Tax (MDET) will come back into effect in 2018
Manufacturers and importers of taxable medical devices will be subject to a 2.3% tax on US sales.
Any listed medical device that has a three-letter FDA product code falls under MDET requirements. Devices that currently have no FDA product codes assigned to them are not subject to the tax.
In short, most dental laboratories are not subject directly to the Medical Device Excise Tax. However, all dental laboratories will likely see increased costs for materials and equipment in 2018, as suppliers may increase costs to laboratories to offset the tax.
NADL previously published a Member Guide to the Medical Device Excise Tax to help outline what activities and/or products may trigger tax compliance for dental laboratories. The manual is available to members by emailing [email protected]
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Manufacturers and importers of taxable medical devices will be subject to a 2.3% tax on US sales.
- Originally implemented in 2013 as part of the US Patient Protection and Affordable Care Act (ACA, or Obamacare),MDET imposed a 2.3% excise tax on manufacturers and importers of “taxable medical devices” sold in or imported to the US. Campaigns by industry trade groups as well as many US legislators to repeal MDET began even before the 2013 implementation; although those efforts did not succeed, the US government did place a moratorium on MDET whereby medical device companies were not liable for the tax from January 2016 to December 2017.
- Now, medical device manufacturers and importers will have to report sales of taxable devices to the US Internal Revenue Service (IRS) for the first quarter of 2018 no later than April 30, 2018.
Any listed medical device that has a three-letter FDA product code falls under MDET requirements. Devices that currently have no FDA product codes assigned to them are not subject to the tax.
In short, most dental laboratories are not subject directly to the Medical Device Excise Tax. However, all dental laboratories will likely see increased costs for materials and equipment in 2018, as suppliers may increase costs to laboratories to offset the tax.
NADL previously published a Member Guide to the Medical Device Excise Tax to help outline what activities and/or products may trigger tax compliance for dental laboratories. The manual is available to members by emailing [email protected]
Continue reading...