Medical device excise tax (updated March 28, 2013)

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03/29/2013 by Pharmaceuticals & life science
Medical device excise tax (updated March 28, 2013)

At a glance

This edition of PwC's Pharmaceutical and Life Sciences Industry Alert reports that medical device manufacturers will need to begin accounting for this tax for all sales, other than tax free sales, beginning January 1, 2013 and will need to consider the impact of this tax on their 2013 results.

The Health Care and Education Reconciliation Act of 2010 (the "Act") imposes a tax equal to 2.3% on the sales price of any taxable medical device by a medical device manufacturer, producer or importer of such device. The excise tax applies to sales after December 31, 2012.

This edition of PwC's Pharmaceutical and Life Sciences Industry Alert reports that medical device manufacturers will need to begin accounting for this tax for all sales, other than tax free sales, beginning January 1, 2013 and will need to consider the impact of this tax on their 2013 results.