Not everything scary disappears after Halloween. Despite some political uncertainty, the new medical device federal excise tax is waiting to spring from its hiding place and yell “Boo!” To avoid certain fright, medical device manufacturers and importers must prepare for this new federal excise tax now.

The medical device federal excise tax affects manufacturers, importers and producers of “taxable medical devices” and is applied to all sales of taxable medical devices occurring on or after January 1, 2013. The federal excise tax on medical devices is calculated at 2.3% and applies to leased medical devices by the manufacturer.

There are three primary federal excise tax exemptions available on the sale of medical devices. Retail, further manufacturing exemption and export exemption with stipulations for qualifying for each.

To learn more read our article titled “Medical Device Manufacturers and Importers prepare for New Federal Tax on Medical Devices”. The article explains the differences between all three and outlines an immediate “to do” list for affected businesses.

If you have any questions regarding the medical device federal excise tax, please any member of our Tax Services Team.