VAT on Heat pump installation in Portugal: 6%, 13% or 23%?
23% applies to installing a heat pump on its own on the mainland, because no item in Lista I names heat pumps and the old alternative-energy item (verba 2.37) ceased on 30 June 2025.
- Rate
- 23% (standard rate) on the mainland
- Reduced-rate lists
- Heat pumps are not named in Lista I or Lista II
- Verba 2.37
- Covered alternative-energy equipment until 30 June 2025, now ceased
- Standard rule
- Goods and services not on a list are taxed at 23% (art. 18 CIVA)
- Official text (Lista I of the Código do IVA)
- info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigo...
- Sources
- info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigo...
info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigo... - Checked
- 2026-11-05
What decides the rate
- A heat pump bought or fitted on its own is a plain supply or service.
- A wider works contract that qualifies for 6% is a different case: see the rehabilitation and repair pages.
Important
- This page is a general summary of public sources and not tax advice.
- Rates shown are for mainland Portugal. The rate depends on the facts of each job, so ask a certified accountant (contabilista certificado) or the Tax Authority (AT) before you invoice or pay.
More: VAT guide
Free check
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