Possible Revival of US Medical Device Excise Tax

December 14, 2017 Yujin Weng

In 2013, Congress passed the Medical Device Excise Tax (MDET). It applied (at the rate of 2.3%) on the first sale of qualifying medical devices in the United States by manufacturers or importers. The MDET was the closest thing to a federal-level sales tax in the United States.

The Consolidated Appropriations Act of 2016 contained a “Moratorium on Medical Device Excise Tax” which suspended the MDET from January 1, 2016 through December 31, 2017. This means the MDET is slated to return on January 1, 2018 absent any further legislative action.

The revival of MDET might only be short-lived or might not even happen. Federal legislation was recently introduced on December 12, 2017, which provides for another temporary moratorium on the MDET, reportedly for five years.   Sovos recommends Tax Managers closely monitor the possible return of the MDET on January 1, 2018 and the legislative effort to continue to suspend the MDET.

Previous Article
Spain Issues the 2018 SII Filing Deadline Calculator

Spain's tax administration (the AEAT) has announced the release of the SII 2018 deadline calculator.

Next Article
Manitoba And Quebec Canada To Start Imposing Battery Fee On New Goods

A new fee has been announced that will be imposed in Quebec and Manitoba on all sales of flashlights and sp...


Regulatory Analysis News - Delivered Weekly

Thank you for subscribing!
Error - something went wrong!