Heat Pumps - Zero Rated VAT
Published by ACRS Admin in Heat Pumps · Monday 01 Sep 2025 · minutes
With effect from 16th April 2022, it has been confirmed that if an air source heat pump is being used to heat the home, then the VAT rate applied will be zero rated.
Even if the heat pump can also be used to cool or provide air conditioning, it will still qualify for zero rated VAT.
This effectively ensures that heat pumps fitted to domestic properties will be 20% cheaper.