On Wednesday, the Internal Revenue Service (IRS) released final rules for the Medical Device Excise Tax (MDET). Also, the IRS separately released interim guidance for determining the sales price on which the MDET is based.
The MDET is set to take effect on January 1, 2013. It is a 2.3% excise tax that medical device manufacturers and importers must pay on their gross sales. However, sales of eyeglasses, contact lenses, and hearing aids, as well as many medical devices that are sold over-the-counter, are exempt from the tax.
We have previously reported on the MDET as the IRS prepared for its implementation and as the Supreme Court ruled on the constitutionality of the Patient Protection and Affordable Healthcare Act (PPACA) of 2010 earlier this year.