The medical device excise tax is still several years from first collection and many in industry are focusing on repeal or revision of the measure, but some attorneys say companies should start seeking answers now from the federal government on how the tax will be implemented.
Industry Preps For Excise Tax Implementation While Repeal Effort Continues
Article preview from "The Gray Sheet" - August 11, 2010
The device tax provision, creating a 2.3% levy on most U.S. device sales beginning in 2013, takes up less than two pages of the massive health care reform legislation enacted earlier this year, but it raises a laundry list of ambiguities, industry lawyers say.
Some uncertainties involve administrative issues like needed forms and documentation and tax collection timelines. But there are also broader questions centering on how the Treasury Department will determine which types of products and which types of transactions are exempt from the tax.
"The medical device industry is very complex, not only in the nature and diversity of the products our manufacturers produce, but also based on the types of transactions that exist between the manufacturers and the ultimate end user," said Christopher White, general counsel for AdvaMed, in an interview.
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