A part of Obama’s Affordable Care Act included a 2.3% excise tax on medical devices. I had one importer inquire about the excise tax today and the method for paying it. Unlike the Federal excise tax on alcohol, this tax is not collected via U.S. Customs at the time of import. It will be reported on Form 720, the Federal Quarterly Excise Tax Return form. The IRS has posted an FAQ website to answer some questions that medical device manufacturers and importers may have about the tax.
Here are some other key details about the Medical Device Excise Tax:
Politicians are working on repealing this excise tax. With only three months left until the new year, manufacturers and importers should be consulting with their CPA and various accounting advisers to discuss which items will be affected by the tax.
-Jimmy Ting
jimmyting@gwlcorp.com