Zero VAT on Domestic Air Conditioning Systems

In his Spring 2022 Statement the Chancellor announced a reduction in VAT on the installation of a number of domestic energy saving measures, including air source heat pumps (domestic air conditioning systems that provide heating as well as cooling). The changes were introduced from April 2022 and will last five years, providing a huge benefit to homeowners looking to find low energy solutions to heat their homes.

For the domestic air conditioning industry, the Chancellor has considerably simplified the rules about which types of heat pumps qualify.

Following consultation with HMRC, BESA (Building Engineering Services Association) the defining factor for VAT to be applied as zero rated to domestic air conditioning is that the system installed must have the ability to heat the home, regardless of whether it can also cool. This means typical domestic air conditioning systems are now VAT zero rated.

With summers getting warmer and more of us spending time working from home the leading air conditioning manufacturers have extended their domestic air conditioning ranges. With stylish designs, different colour options and smart technology built-in, air-conditioning systems are becoming a regular site in any home.

A2E Services provides air conditioning to suit all budgets and applications. For expert advice and to arrange a free no obligation quotation please contact one our team.