Medical Device Excise Tax Insights

Calculate and manage potential tax liabilities while saving hours of manual time and money.

Taylor Cortright

Taylor Cortright

Managing Director & Co-Leader, Federal Excise Tax, KPMG US

+1 202-533-6188
Deborah Gordon

Deborah Gordon

Managing Director and Co-Leader, Fed Excise Tax, KPMG US

+1 202-533-5965

KPMG MDET Processing Tool

Our proprietary web-based technology can help you accurately calculate and manage potential tax liabilities while saving hours of manual time and money.

Our goal is to help companies meet their MDET tax compliance responsibilities and account for what devices are taxed under this law, which, in turn, can help reduce demands on internal resources.

Key features:

A system that is ready to process company data after configuration and provisioning have been completed based on the company’s requirements

  • Secure data center and software environments—utilizing the latest industry hardware and software
  • Leading industry standard security, backup processes and data center stability
  • Consistent underlying computing and tax methodologies
  • Routine updates to stay current with changes in the tax law, IRS interpretations and court rulings
  • Configurable framework to support a variety of tax positions

KPMG Insights on MDET

Our skilled tax professionals, many with backgrounds at the IRS, can review your positions and documentation and help remediate areas of risk. And if the need arises, we can help you prepare for a federal examination and represent you before that body.

Reinstatement of the medical device excise tax
The moratorium suspending medical device excise tax (MDET) is set to expire. Absent congressional action, effective January 1, 2020, MDET will be imposed on sales of taxable medical devices by manufacturers and importers. The first semimonthly deposit of MDET will be due January 29, 2020, and the first MDET return—filed on Form 720, Quarterly Federal Excise Tax Return—will be due April 30, 2020.
Final Regulations on the Medical Device Excise Tax
The medical device excise tax is now in effect. Generally, tax is imposed on the sale, use, or lease of a “taxable medical device” by its manufacturer or importer. The government released final regulations on this tax late last year. This article discusses the final regulations and identifies some questions that remain unanswered.
Government Issues Interim Guidance on the Medical Device Excise Tax
The medical device excise tax is imposed on the sale, use, or lease of a “taxable medical device” by its manufacturer or importer. The government released interim guidance on a number of matters concerning implementation of the tax—constructive sale price, software licenses, charitable donations, convenience kits, and deposit penalty relief. This article discusses the interim guidance and provides some observations for taxpayers implementing the new tax.
KPMG's Medical Device Excise Tax Services Brochure
Under the MDET law, tax liabilities and semimonthly payments can be substantial for device manufacturers and importers.