The excise tax applies on the sale of taxable medical devices by a manufacturer or importer at a 2.3% rate. A taxable medical device includes any device defined in the U.S. Food, Drug and Cosmetic Act intended for human use and includes "any instrument, apparatus, implement, machine, contrivance, implant, in vitro reagent or other similar or related article including any component, part or accessory that is intended for use in diagnosis or treatment of human diseases or is intended to affect the structure or any function of the body, but does not include drugs".
Exceptions include eyeglasses, contact lenses and hearing aids as well as items generally purchased by the public at retail for individual use.
For more information, contact your KPMG adviser.
Information is current to November 20, 2012. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG’s National Tax Centre at 416.777.8500.