Increase in VAT Registration Thresholds
The Act provides that from 1 January 2025, the existing VAT Registration Thresholds are increased from EUR 40,000 to EUR 42,500 for services and from EUR 80,000 to EUR 85,000 for goods.
VAT Rate on Supply and Installation of Heat Pumps
The Act provides for a reduced VAT rate of 9% on heat pumps meeting specific technical standards from 1 January 2025. This measure is designed to incentivize homeowners to install heat pumps.
Extension of VAT Reduction for Gas and Electricity
The Act confirms the extension of the 9% reduced VAT rate for gas and electricity which was introduced with effect from midnight on Budget night for an additional 6 months, until 30 April 2025.
Source Orbitax
