Moratorium on Medical Device Excise Tax


On December 18, 2015, President Obama signed into law the "Protecting Americans from Tax Hikes Act of 2015." The act imposes a two-year moratorium on the medical device excise tax effective for sales made after December 31, 2015.

The tax is scheduled to be reinstated for sales transacted after December 31, 2017. The 2.3% excise tax on sales of certain medical devices by manufacturer or importer came into effect as a result of the Affordable Care Act.

Companies should adjust invoicing systems settings to remove the 2.3% MDET on all sales beginning January 1, 2016 through December 31, 2017.

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