Value Added Tax Consolidation Act 2010 Schedule 3 paragraph 12A

Low emissions heat pump heating systems

Schedule 3 paragraph 12A provides for the application of the reduced rate of VAT to the supply and installation of low emissions heat pump heating systems.

• The supply and installation of low emissions heat pump heating systems qualifies for the reduced VAT rate under Schedule 3.
• This covers heat pump systems designed to produce low levels of emissions, supporting the transition to more energy-efficient heating solutions.
• The reduced rate applies to both the supply of the equipment and its installation as a combined transaction.
• This provision was introduced by Finance Act 2024 section 88 and has effect from 1 January 2025.