IRS Releases MDET Interim Guidance and Final Rules

Wednesday, December 5th, 2012

 
 
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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.


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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