Medical Device Tax
By now you have noticed your supply bills increasing due to the new 2.3% medical device tax issued by the IRS on all FDA registered products. We have been following the developments on this tax through the National Association of Dental Laboratories for quite some time now. We had concerns that we would be required to charge this tax on our final products.
The ruling however, did not come down until late December leaving many questions unanswered until then. In the end, the tax applies to products and materials that are required to be registered with the FDA.
Like you, our supply bills have increased too some by more than 5%. We wanted to let you know that for now, we are absorbing these costs and we do not plan to increase prices to cover this additional expense while the economy continues to recover.