SOURCE: Transaction Tax Resources Inc.
MCMINNVILLE, OR--(Marketwire - Oct 30, 2012) - TTR, the industry leader in providing accurate, current, supported and easy to find sales and use tax answers, has just announced the release of Medical Device Excise Tax Answers for over 5,000 FDA medical device product codes.
Medical Device Excise Tax ("MDET")
Effective January 1, 2013, a 2.3% excise tax (which was created as part of the Obama administration's Affordable Care Act -- commonly referred to as ObamaCare) will be imposed on the sale of certain medical devices by manufacturers and importers. This new tax creates challenges for the entire medical industry, including manufacturers, distributors (who are sometimes considered manufacturers under the new law) and health care providers.
TTR has reviewed over 5,000 FDA medical device product codes and has identified when the MDET will apply to these codes. These answers are now available exclusively through TTR's Website www.ttrus.com.
TTR's research and content development teams started with a thorough analysis of all applicable laws, regulations and agency materials. TTR then analyzed several factors in arriving at a tax answer, including, but not limited to, the retail exemption "safe harbor" factors, exempt factors, and taxable factors found in the proposed IRS MDET regulations.
"The medical industry has kept our teams busy for years. After a review of 2 million medical products and services over 4 years, TTR released the first and only fully updated set of sales and use tax answers for the medical industry, including medical manufacturers, medical distributors, health care providers and health insurance companies. The Medical Device Excise Tax presented a new and unique challenge though. There are a significant number of 'factors' or questions that must be answered in order to arrive at an accurate tax answer. This required the creation of a structured approach that was more challenging than the typical sales tax analysis that we previously applied to thousands of medical devices in the U.S.," said Shon Holyfield, CEO of TTR, Inc.
TTR (Transaction Tax Resources, Inc.) is the industry leader in providing accurate, current, supported and easy to find sales and use tax ANSWERS. Headquartered in McMinnville, Oregon, TTR maintains tax answers for over 5 million products and services. TTR created the first ever online solution for finding sales and use tax ANSWERS. TTR clients receive valuable tax ANSWER updates, not just notifications of when laws change. TTR provides unlimited support at no extra charge and provides audit defense assistance for all TTR tax ANSWERS -- an industry first. More information about TTR may be found at www.ttrus.com.