More news on the Excise Tax: As reported in an earlier post, the only dental restorations that are subject to the new 2.3% Medical Device Tax are those that are required to be listed as a device with the FDA (including sleep apnea and some orthodontic devices). However, according to the NADL, the tax will also apply to two other areasâimported restorations and raw materialsâsince both are required to be listed as devices with the FDA and therefore become a taxable medical device under the IRS rule.
This means that the importer of restorations made by foreign laboratoriesâmeaning the domestic laboratoryâwill be responsible for reporting and remitting the tax. In addition, manufacturers and suppliers are also subject to the tax on the sale of raw materials like alloys and ceramics. âDental laboratories will likely see increased costs of goods due to the need for suppliers and manufacturers to pass on the costs of the tax,â says the NADLâs Bennett Napier, CAE. âDental laboratories still need to understand and be prepared to mitigate the impact of the excise tax as it still will have a significant impact relative to overall operating expenses.â