UPDATE: The Medical Device Tax was REPEALED with the 2020 Federal budget agreement passed by Congress on December 17th. The President is expected to sign this legislation.

PrintMailRate-it

UPDATE:  The Medical Device Tax was REPEALED with the 2020 Federal budget agreement passed by Congress on December 17th.  The President is expected to sign this legislation.


Medical Device Tax Expires 12/31/2019
Rödl & Partner Tax Matters Vol 2019 – 7, published in November 2019


Businesses importing or manufacturing certain medical devices will be subject to a 2.3% excise tax on gross sales effective January 1, 2020.


The unpopular excise tax initiated as a revenue raiser from the Affordable Care Act in 2013.  The tax was placed on a moratorium that initially expired at the end of 2017 until it was extended for two additional years at the end of that year.


Without Congressional action, the current moratorium will expire at the end of 2019.  Despite heavy lobbying, the current landscape does not see a further extension in the near future.  Businesses that import or manufacture medical devices should consider the impact of this tax on their pricing and costs effective January 1, 2020. If you are not certain how your business may be impacted by the tax, please refer to your Rödl & Partner advisor. 


This publication contains general information and is not intended to be comprehensive or to provide legal, tax or other professional advice or services. This publication is not a substitute for such professional advice or services, and it should not be acted on or relied upon or used as a basis for any decision or action that may affect you or your business. Consult your advisor.

We have made reasonable efforts to ensure the accuracy of the information contained in this publication, however this cannot be guaranteed. Neither Rödl Langford de Kock LP nor any of its subsidiaries nor any affiliate thereof or other related entity shall have any liability to any person or entity which relies on the information contained in this publication, including incidental or consequential damages arising from errors or omissions. Any such reliance is solely at user's risk.

Any tax and/or accounting advice contained herein is based on our understanding of the facts, assumptions we have been asked to make, and on the tax laws and/or accounting principles in effect as of the date of this advice. No assurance is given that the conclusions would be the same if the facts or assumptions change, or are not as we understand them, or that the tax laws and/or accounting principles will not change subsequent to the issuance of these conclusions. In addition, we do not undertake any continuing obligation to advise on future changes in the tax laws and/or accounting principles, or of the impact on the conclusions herein.

No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Rödl Langford de Kock LP.

Copyright © November 2019 Rödl Langford de Kock LP
All rights reserved. 

We use cookies to personalise the website and offer you the greatest added value. They are, among other purposes, used to analyse visitor usage in order to improve the website for you. By using this website, you agree to their use. Further information can be found in our data privacy statement.
Deutschland Weltweit Search Menu