The VAT rate applicable to gas boilers is increased in 2025, indicated the Ministry of Ecological Transition. Under a decree published in the Official Journal on December 24, 2024, this will increase from 5.5% to 10%. It was planned for it to increase to 20% in the draft Budget 2025 subject to censorship at the beginning of December 2024. But the State still wanted to increase the rate, by marginally modifying this VAT decree whose publication was planned by the finance law for 2023, as the ministry tells us. This exclusion of boilers also concerns very high energy performance (THPE) appliances.
Compliant with “European commitments”
The decision was taken in order to make France compliant “to our European commitments to put an end to financial incentives for the installation of fossil fuel boilers on January 1, 2025, subject to the adaptations provided for in article 2 of this decree (dated estimate, accepted by both parties and having given rise to a deposit collected before January 1, 2025)”. Maintenance and repair services for THPE boilers, it is however specified, remain eligible for this reduced rate of 5.5%.
Another adjustment made compared to the initial copy of the decree: exterior solar protection and air fans become eligible for the reduced VAT rate of 5.5% “in order to facilitate the fight against thermal kettles”. This equipment previously benefited from a 10% rate.
France
