Beginning January 1, 2013, all sales of medical equipment will be subject to a new 2.3% excise tax. This tax was enacted through The Health Care and Education Reconciliation Act of 2010.
The tax is on the selling price – not on profits – and is paid quarterly on Form 720.
This tax is being imposed on the manufacturers of devices listed with the FDA. This includes equipment and supplies for both medical and non-medical uses as long as they are a listed item with the FDA.
Since you should expect the manufacturers to pass the new tax on to the end user, you can save money by buying these items before December 31, 2012.
Currently there is pressure being put on Congress to repeal this tax. We will keep you informed.
Have questions about the Medical Device Excise Tax? Post a comment below or contact our Life Sciences and Innovation Group at 440-449-6800.