AIPOR Requests 6% IVA Tax Rate Extension for AC Units

6% IVA Tax Rate

Portugal: The Portuguese Installers Association (AIPOR) has appealed for the continuation of the reduced 6% IVA (VAT) tax rate on air conditioning equipment and solar panels, stating it is essential to support decarbonisation and energy efficiency. Currently applied since 2022, the reduced rate will end on July 1st, when air conditioning equipment, thermal or photovoltaic solar panels, and wind turbines will be subjected to a 23% IVA rate. AIPOR emphasized that maintaining the reduced rate is aligned with the National Energy and Climate Plan 2030 and supports environmental goals.

AIPOR President Celeste Campinho said the extension of the measure is “crucial for consumers to adopt more environmentally friendly practices.” She noted that ending the reduced VAT rate creates an even greater obstacle to the purchase of such equipment. “We live in a time when decarbonization is vital to guarantee the future of future generations, and with European and global commitments underway in terms of energy efficiency and sustainability, it is essential to encourage the market and consumers,”.

Source: The Portugal News