This guest post is brought to you by our friends and colleagues at Goldin, Peiser & Peiser, LLP, a Dallas-based accounting firm. Some information in this blog has been revised from its original version, published 12.14.12.
As it stands now, regardless of whether we go off the fiscal cliff or not, there will be a tax on the sale of medical devices in 2013. As mandated in the Patient Protection and Affordable Care Act, manufacturers will be assessed a 2.3% tax on the sale of certain devices. According to the IRS, taxable medical devices are defined as those that are listed under a single FDA product code. Other devices are:
- Nitrous and oxygen delivery systems and gas
- Computer equipment used for diagnostic purposes
- X-ray equipment, sensors, cone-beam CT systems, caries detection devices, and cameras
- Surgical equipment
- Handpieces
- Replacement parts
- Remanufactured or refurbished equipment
- Instruments
- Imaging equipment
- CAD/CAM machines
- Prosthetic devices
All May Not Be Lost
Manufacturers as well as the dental and medical communities are pushing hard against the tax, lobbying for the delay of the start date. And not everyone on Capitol Hill supports the tax. Many lawmakers are concerned about its negative financial implications. 18 Senators and Senators-Elect sent a letter to Senate Majority Leader Harry Reid asking that the tax be included in the fiscal cliff negations. They expressed their concern that the “the medical device industry has received little guidance about how to comply with the tax–causing significant uncertainty and confusion for businesses.” They urged Senator Reid to support delaying enactment of the provision in a “fiscally responsible manner.” Read More