VAT relief
0% VAT on qualifying home installations
Residential reverse-cycle systems supplied and fitted together are zero-rated until 31 March 2027. We apply it automatically when your job qualifies — and tell you plainly when it doesn't.
Pay 0% VAT on qualifying home air conditioning installations
Qualifying residential air conditioning installations in the UK are eligible for 0% VAT until 31 March 2027, provided the system works as a reverse-cycle air-to-air heat pump supplying both heating and cooling. The relief covers the equipment and the labour when they are bought together, and we apply it automatically on your quote where your installation qualifies.
The installation must be in a domestic building — a house, flat or bungalow that you live in.
A permanently fixed split system or air-to-air heat pump that provides both heating and cooling.
Unit and installation bought together from a VAT-registered contractor. Buying the unit on its own is charged at 20% VAT.
The 0% rate ends on 31 March 2027, after which it reverts to the reduced 5% rate.
- 0% VAT on supply-and-fit residential installations
- Applies to both the unit and the labour
- Reverts to 5% VAT after 31 March 2027
- Portable and plug-in air conditioners
- Commercial and industrial premises
- Cooling-only systems with no heating mode
- Hardware bought separately without installation
VAT treatment depends on your property and the system specified. We confirm the applicable rate in writing on your final quote following survey.
Questions we get asked
Do I pay VAT on a home air conditioning installation?
Qualifying residential air conditioning installations are eligible for 0% VAT until 31 March 2027, provided the system is a permanently fixed reverse-cycle air-to-air heat pump supplying both heating and cooling and the unit and installation are bought together from a VAT-registered contractor.
What qualifies for the 0% VAT air conditioning rate?
The property must be a residential domestic building such as a house, flat or bungalow; the system must be a fixed split system or air-to-air heat pump with heating capability; and the unit and the fitting must be purchased together as supply and fit. Portable units and commercial properties are excluded.
What happens if I buy the air conditioning unit separately?
Buying the hardware on its own triggers the standard 20% VAT rate on the equipment. The 0% rate only applies when the unit and the installation labour are supplied together by the same VAT-registered contractor.
When does the 0% VAT air conditioning relief end?
The 0% rate expires on 31 March 2027, after which qualifying residential installations revert to the reduced 5% VAT rate.