Medical Device Excise Tax Officially Suspended

On January 22, 2018, the President signed into law H.R. 195, which provides continuing funding to the federal government through February 8, 2018. While this resolution received a massive amount of media attention, the fact that law includes a suspension of the 2.3% medical device excise tax for two more years (until January 1, 2020) was not nearly as widely reported.

By way of a quick recap – this tax first took effect on January 1, 2013 but was suspended for two years from January 1, 2016 through December 31, 2017. Technically, the tax briefly returned on January 1, 2018 but, based on this new law, is now further suspended until 2020. While welcoming the suspension, the medical industry continues to favor a permanent repeal.

Author

Yujin Weng

Yujin Weng is Manager of Regulatory Analysis & Design at Sovos. She leads a team of attorneys that focus on global VAT determination, leveraging her ten-plus years’ experience with indirect taxes at Sovos. Yujin is a member of the Massachusetts and New York Bars, has a J.D. cum laude from Boston University School of Law, an M.A. from Syracuse University, and a B.A. from Nanjing University (China). She is fluent in Chinese.
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