---
title: The US Medical Device Excise Tax Is Back
description: Manufacturers and importers of taxable medical devices should be expecting a 2.3% tax on sales. Remember to report the sales of your taxable devices to the IRS.
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# The US Medical Device Excise Tax Is Back

**Written By:** P. Varma | **Published On:** January 16, 2018

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While it may have been in moratorium, it’s coming back full force. Manufacturers and importers of taxable medical devices should be expecting a 2.3% tax on US sales. For those of you that fall into this category, be sure to report the sales of your taxable devices to the IRS by the right deadlines.

## What is the MDET?

The Medical Device Excise Tax (MDET) was implemented with the 2010 healthcare reform law. It was intended to help raise approximately $30 Billion over a span of 10 years to help pay for the expansion of the Affordable Care Act. However, many members on various political platforms have voiced their concerns. The biggest echos came from the fact that many of the devices that are being taxed are in fact a part of life saving and diagnostically impactful technology. Additionally, there have been opinions voiced that the excise tax inadvertently harmed job creation and inhibited economic growth in the past. Not to mention that the tax fell short of its goal and was heavily criticized for the poor long term return. The US Department of Commerce showed that job ranks in the medical technology fell close to 29,000 while the tax was up and running.

On December 18, 2015, US Congress enacted the Protecting Americans from Tax Hikes Act of 2015, also known as the PATH Act. If was due to this that a moratorium, or temporary ban was imposed on the MDET which lasted from January 1, 2016 through January 1, 2018.

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## How Will This Affect Me?

Starting January 1, 2018 the MDET has been removed from its ban. This means that anyone involved in the purchase of medical devices with now be imposed with a 2.3% excise tax. The FDA has a list of medical devices that fit the parameters for the tax, as well as including those that are exempt. Such exempt devices include: eye glasses, hearing aids, contact lenses, or any device that falls within a specified exemption of the tax itself. Such an exemption would be the retail exemption.

So for those involved in the sale of a medical device that will have the imposed tax, be sure to file a [Form 720](https://www.irs.gov/forms-pubs/form-720-quarterly-federal-excise-tax-return). Below are the deadlines for 2018.

*January, February, March*                April 30, 2018

*April, May June*                                July 31, 2018

*July, August, September*                  October 31, 2018

*October, November, December*       January 31, 2019

## Final Thought

While there are those that feel that the return of the tax will result in more of the economic pitfalls seen in the past, the truth is that it’s here to say...at least for now. As a consumer and taxpayer it is your responsibility to ensure you fill out the Form 720. Additionally, if you have questions about what is included or excluded, visit [www.fda.gov](http://www.fda.gov).

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