0% VAT on Domestic Air Conditioning: Which Installations Qualify?
Considering fixed air conditioning that can heat your home as well as cool it? Some domestic installations qualify for 0% VAT under the energy-saving materials rules. The equipment and installation must meet the conditions.
When does the 0% rate end?
HMRC’s current guidance applies the zero rate to qualifying installations in residential accommodation until 31 March 2027. Under the rules currently published, the rate becomes 5% from 1 April 2027.
Which air-conditioning systems can qualify?
Permanently fixed air-source heat pumps can qualify, including reversible air-to-air systems used for heating and cooling. HMRC says the treatment of a particular product depends on its facts where there is doubt. Portable or moveable units do not qualify under this relief.
Installation, servicing and equipment purchases
The relief covers qualifying installation work and qualifying equipment supplied by the installer. Buying equipment on its own is standard-rated. Routine servicing and repairs are not covered by this installation relief.
We assess the proposed system, property and work before confirming VAT in your quotation. Paying a deposit or making an enquiry does not by itself establish eligibility.
Ask about a home heating and cooling installation
Central Heating Hub welcomes installation enquiries in Bromsgrove, Kidderminster, Cookley, Kinver, Stourbridge, Worcester and surrounding areas. Send your postcode, the rooms involved and how you intend to use the system.
Explore our air-conditioning services and heat-pump services, or call 01527 910345. You can also chat with our team on WhatsApp using 0330 330 0245.
Official guidance
Checked 4 November 2026. Read HMRC VAT Notice 708/6 and HMRC’s guidance on air-source heat pumps and air conditioning. VAT treatment follows the rules and circumstances applicable to the supply.
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