Portugal calls for retention of reduced VAT rate
18th June 2025
PORTUGAL: The Portuguese association of M&E contractors and installers has called for an extension of its government’s reduced 6% VAT rate for air conditioning and heat pumps.
The measure, which provides a VAT reduction on the standard 23% rate, was first introduced in 2022. It was included in the 2024 budget that ends on 30 June. The 2025 State Budget does not make any reference to the change in VAT on this matter and there is currently no indication of an extension.
In addition to air conditioning and heat pumps, the reduced rate also applies to solar thermal systems, PV, inverters and batteries.
The Portuguese association AIPOR recalls that this measure was created with the aim of boosting energy efficiency and sustainability, accelerating the replacement of inefficient air conditioning systems, and in line with the goals of the National Energy and Climate Plan (PNEC 2030), making these technologies accessible to all and, at the same time, encouraging their adoption.
In statement, the president of AIPOR, Celeste Campinho, said that an extension of the reduced rate was “crucial” to encourage consumers to adopt more environmentally friendly practices, purchasing more efficient equipment. “With the end of the reduced 6% rate, not only is decarbonisation at stake, but there is also a greater obstacle to the purchase of this equipment, as we are facing a 17 percentage point increase,” she warns.
“We live in a time when decarbonisation is vital to guarantee the future of future generations, and with the ongoing European and global commitments in terms of energy efficiency and sustainability, it is essential to encourage the market and consumers”, she added.
