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January 30, 2018
2018-0221

Medical Device Excise Tax suspended until 2020

A provision in the continuing resolution (HR 195) signed by President Trump on January 22, 2018, extends for two years (through 2019) the moratorium on the 2.3% excise tax imposed on the sale of medical devices (the MDET), retroactive to sales made after December 31, 2017. Consequently, a deposit of MDET due for taxable sales made during the period January 1, 2018 through January 15, 2018 is no longer required.

Implications

Unless additional action is taken, the MDET will be reinstated on January 1, 2020. The medical device industry has garnered significant support for the permanent repeal of the MDET. It is likely that advocates will continue to push Congress to consider legislation to repeal the MDET before it is reinstated. Ernst & Young, LLP will monitor this development and issue updates as needed.

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Contact Information
For additional information concerning this Alert, please contact:
 
Indirect Tax Services
• Ashley Scheele(713) 750-8272;
• Minde King(404) 817-4006;
• Frank Cannetti(412) 818-6062;
• Sheri Morales(949) 437-0350;
• Dan Lipton(617) 585-1873;
 

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