- This guidance explains the VAT treatment of heat pump heating systems
- For additional details on VAT for fixtures, fittings, and construction services, refer to Revenue’s specific guidance
- Starting January 1, 2025, the supply and installation of low emission heat pump heating systems will be taxed at the second reduced rate
- Before January 1, 2025, these systems were taxed at a reduced VAT rate, following the two-thirds rule
- The second reduced VAT rate applies when a single business handles both the supply and installation of the heat pump system
- This rate applies to all properties, not just residential ones
- If a heat pump heating system is supplied without an installation contract, the standard VAT rate applies
- A separate installation contract for a heat pump heating system may attract a reduced VAT rate
Source: revenue.ie
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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