TLDR

• From July 18, 2026, France lowers VAT to 5.5% on fixed, reversible air-to-air heat pumps that meet strict efficiency and connectivity standards.
• Qualifying units must have high energy ratings (A++ for single indoor units, A+ for multiple), remote control features, and use low-impact refrigerants.
• This rule helps homeowners save money, guides contractors on what to stock and install, and supports property managers in standardizing efficient heating and cooling systems.

Starting July 18, 2026, France will cut the value-added tax (VAT) to 5.5% on fixed, reversible air-to-air heat pumps that meet strict efficiency and connectivity standards. Heat pumps that do not meet these rules will continue to face the full 20% VAT rate. This change directly impacts homeowners, contractors, and property managers by making high-efficiency, connected heat pumps more affordable and easier to identify. The new tax break creates a clear incentive to choose units with advanced performance, smart controls, and low global warming potential refrigerants.

Decree checklist to access the 5.5% rate

To qualify for the reduced 5.5% VAT rate in France, heat pumps must meet specific rules. First, the system must be a fixed, reversible air-to-air unit. Reversible means it provides both heating and cooling. The unit’s power can be up to 12 kW. Efficiency standards differ by type: mono-split units (with one indoor unit) need at least an A++ rating, while multi-split units (with several indoor units) require a minimum of A+. These ratings consider both heating and cooling performance. Connectivity is also mandatory. The system must allow remote control and programmable scheduling, making it easier to manage energy use. Finally, the refrigerant used must have a low global warming potential (GWP), meaning it has less impact on the climate. Proof of this refrigerant and connectivity must be provided during commissioning to confirm eligibility. Meeting all these points is essential to benefit from the tax break starting July 18, 2026.

How the rule shifts choices for each buyer

For homeowners, the lower 5.5% VAT makes efficient, connected heat pumps more affordable. This improves the payback period on models with smart controls and future-ready features. Contractors will need to focus on stocking units that meet the new requirements. They should train technicians on setting up remote controls and scheduling, and keep detailed records to prove the install qualifies for the tax break. Property managers can benefit by standardizing these specs across all their properties. This simplifies purchasing, maintenance, and meeting energy goals across their portfolio. Each group now has clear incentives to choose high-efficiency, connected heat pumps, changing how they buy, install, and manage these systems.

Specs to prioritize when shopping or quoting

Look for heat pumps with efficiency labels of A++ for mono-split units, which have one indoor unit, or A+ for multi-split units that serve multiple rooms. These ratings show strong seasonal heating efficiency (SCOP) and cooling efficiency (SEER), meaning the system uses less energy year-round. Smart controls are required, so choose models with built-in remote app access and programmable schedules that work right away at installation. This lets you control temperature settings from your phone and set timers for better comfort and savings. The refrigerant must be low-GWP, which means it has less impact on the climate. Also, the system should be 12 kW or less in capacity. Using a load calculation to size your heat pump correctly is important. Proper sizing avoids oversizing, which can cause short cycling—when the system turns on and off too often—reducing efficiency and comfort.

Actions to take before July 2026

Homeowners should start by using our sizing tool to find the right heat pump size for their home. Right-sizing means picking a system that matches your actual heating and cooling needs, avoiding waste and extra costs. After that, narrow your choices to A++ or A+ rated models with built-in connectivity for remote control and scheduling. If you’re unsure about your system needs, we can size it for you in seconds. Contractors need to highlight VAT-eligible models in their quotes to help customers get the tax break. Include a commissioning checklist during installation to prove compliance. Also, add clear steps for setting up the smart controls into your standard operating procedures. Property managers should include these efficiency and connectivity specs in their requests for quotes (RFQs). Plan to upgrade existing systems in phases to meet the new standards. Align your service agreements with connected controls to simplify remote monitoring and maintenance. Taking these steps now ensures smooth buying, installing, and managing before the new VAT rules start on July 18, 2026.

Key Takeaways

• Starting July 18, 2026, France reduces VAT to 5.5% on fixed, reversible air-to-air heat pumps that meet strict efficiency and connectivity standards, lowering the purchase cost for qualifying units.
• To qualify, heat pumps must be under 12 kW, have high efficiency ratings (A++ for single indoor units, A+ for multiple), use low global warming potential (GWP) refrigerants, and include remote control and scheduling features.
• This tax rule guides homeowners, contractors, and property managers to prioritize efficient, connected heat pumps, influencing what models are stocked, recommended, and installed.
• The decree promotes future-ready systems by linking financial incentives to measurable performance, smart controls, and environmental impact, encouraging wider heat pump adoption in France.

Frequently Asked Questions

What heat pumps qualify for the reduced 5.5% VAT rate in France?

Only fixed, reversible air-to-air heat pumps up to 12 kW that meet specific efficiency and connectivity standards qualify. They must have at least A++ efficiency for mono-split units or A+ for multi-split units, use low-GWP refrigerants, and include remote control and scheduling features.

When does the new VAT reduction for heat pumps take effect?

The reduced VAT rate of 5.5% applies starting July 18, 2026. Heat pumps that do not meet the technical criteria will continue to be taxed at the standard 20% rate.

How does the VAT cut affect homeowners and installers?

Homeowners benefit from a lower upfront cost on efficient, connected heat pumps, improving payback times. Installers need to stock compliant models, train technicians on connectivity setup, and document installations to ensure eligibility for the reduced VAT.

Why does the decree require digital connectivity in qualifying heat pumps?

Digital connectivity allows remote control and programmable scheduling, which improves energy efficiency and user convenience. It also provides proof of compliance during commissioning to qualify for the lower VAT rate.

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