Ireland cuts VAT on heat pump supply and installation to 9%
This page records one dated change. For the rules in Ireland as they stand today, see the Ireland guide →
- Jurisdiction
- Ireland
- Tax
- VAT
- Change type
- Rate change
- Status
- In force
- Impact
- Action required
- Announced
- 12 November 2024
- Effective
- 1 January 2025
- Authority
- Irish Statute Book (electronic Irish Statute Book, Office of the Attorney General)
- Verified
- Fetched from official source · high confidence
Businesses in Ireland that supply and install low emissions heat pump heating systems, and their customers.
Heat pump systems supplied and installed in Ireland are subject to the 9% second reduced VAT rate from 1 January 2025 (Schedule 3, paragraph 12A of the VAT Consolidation Act 2010).
Section 79(a) of Ireland's Finance Act 2024 (Act No. 43/2024), signed 12 November 2024, added heat pump systems to the list of goods and services subject to the 9% second reduced VAT rate (Schedule 3 paragraph 12A), with effect from 1 January 2025.
What changed in detail
Section 79(a) of the Finance Act 2024 (No. 43 of 2024), signed on 12 November 2024, amends paragraph (ca) of section 46(1) of the Value-Added Tax Consolidation Act 2010. The list of Schedule 3 paragraphs charged at the 9% second reduced rate changes from “paragraphs 7(a), 7A and 12” to “paragraphs 7(a), 7A, 12 and 12A”, with effect as on and from 1 January 2025.
Section 88 of the same Act inserts paragraph 12A into Schedule 3 under the heading “Low emissions heat pump heating systems”. It reads: “The supply and installation of low emissions heat pump heating systems.” Before this, those supplies fell under the 13.5% reduced rate.
Paragraph (b) of section 79 is a separate change: it extends the 9% rate on electricity and gas to 30 April 2025.
What it means
This change is still in force. The Law Reform Commission’s revised text of section 46(1)(ca) still lists paragraphs 7(a), 7A, 12 and 12A. Schedule 3, paragraph 12A, still covers “the supply and installation of low emissions heat pump heating systems”. No later Act has amended either.
Paragraph 12A describes supply and installation together, which is the usual way a heat pump is sold. A sale of the equipment alone does not fit that wording, so check how the contract is framed before applying 9%.
Proof
79. Section 46(1) of the Principal Act is amended— (a) in paragraph (ca), by the substitution of “paragraphs 7(a), 7A, 12 and 12A” for “paragraphs 7(a), 7A and 12” with effect as on and from 1 January 2025
Source snapshot of the official page. Open full size ↗