VAT on THPE (very high energy performance) gas boilers will be increased to 10% on January 1, 2025, the Ministry of Ecological Transition told our colleagues in Ouest-France. Until now, these gas condensing boilers were subject to reduced VAT of 5.5%. Other types of boilers are already at 10%.
A decree dated December 4, published Tuesday in the Official Journal, lists insulation or heating equipment which will continue to benefit from a reduced VAT rate of 5.5%. The maintenance and repair services for very high energy performance boilers are mentioned there, but not the equipment and installation of THPE gas boilers.
The decree specifies, however, that “for operations having been the subject of a dated estimate, accepted by both parties and having given rise to a deposit collected before January 1, 2025, the value added tax rate of 5 .5% remains applicable.”
The 2025 finance bill (PLF) initially planned to increase VAT on gas boilers to 20%, but the measure was ultimately not adopted due to the fall of the Barnier government. “By decree, we can only move from one reduced rate to another reduced rate. This decree therefore allows, in the absence of PLF, to go from 5.5% to 10% for gas boilers,” explains the ministry to the local daily.
Faced with rising electricity prices, orders for gas boilers have increased significantly this year. According to UFC Que Choisir, 40% of French people still heat themselves with gas.
