Charge Excise Tax for Medical Devices

The Internal Revenue Service (IRS) released final regulations and other guidance on the excise tax applicable to the sale of medical devices under the Affordable Care Act. Beginning January 1, 2013, a tax of 2.30% is imposed on the sale, use, lease, or license of all medical devices by manufacturers and importers. For additional details you can follow this link:

 

http://www.irs.gov/uac/Affordable-Care-Act-Tax-Provisions

 

As of the moment, NetSuite only support Sales Tax, thus Enhancement # 238181 has been filed to request for this capability. As an alternate solution, users  can create a mark up item and specify the sales tax account to be impacted under the Account field.

 

1. Navigate to Lists > Accounting > Items > New > Markup.

2. Add the following Details:

 

Item Name/Number = Medical Device Tax

Rate = 2.30%

 

3. Under the Accounting subtab, mark "Account" and choose the account that will be impacted to account for the excise tax.

4. Hit Save.