Are you considering installing an air-to-air heat pump (reversible air conditioning) in your home? Good news: since January 1, 2026, a new decree allows you to benefit from the reduced VAT rate of 5.5% for these systems, under certain conditions. But be careful: the rules are strict and vary depending on whether you live in a single-family home or a condominium. Here's an analysis.
What is the legal framework?
Decree No. 2025-1234 of December 15, 2025 (published in the Official Journal) has expanded the scope of the 5.5% VAT to include the installation of reversible air conditioning systems, in line with Article 278-0 bis A of the French General Tax Code (CGI), which lists energy performance improvement works eligible for the reduced rate. Previously, only heating systems using renewable energy (such as geothermal or air-to-water heat pumps) benefited from this rate. Now, air-to-air heat pumps are included, provided the installation is carried out by a certified RGE (Reconnu Garant de l'Environnement) professional.
Conditions to be met
- Dwelling more than two years old: the reduced VAT only applies to work in homes that have been completed for more than two years as of the start date of the work.
- RGE-certified professional: the installer must hold a valid RGE certification (with a "Heat Pump" designation).
- Prior quote: the professional must provide a detailed quote stating the applicable VAT rate (5.5%). Note: if the quote is dated before January 1, 2026, the VAT rate remains the one in effect on the date of the quote, unless an amendment is made.
- Invoice: the invoice must include the mention "VAT at 5.5% - Article 278-0 bis A of the CGI."
Special case of condominiums
In a condominium, the installation of reversible air conditioning may concern private areas (the owner's unit) or common areas (roof, facade). For private areas, the conditions are the same as for a single-family home. For common areas, the general meeting of co-owners must have approved the work by a simple majority (Article 24 of the law of July 10, 1965). In this case, the condominium association can benefit from the reduced rate if the professional is RGE-certified and the building has been completed for more than two years. Note: if a co-owner installs an individual system in a common area (e.g., placing an outdoor unit on the roof), they must obtain authorization from the general meeting by the majority required under Article 25 (majority of votes of all co-owners).
What are the concrete benefits?
The reduction of VAT from 20% to 5.5% represents significant savings. For an installation billed at €10,000 including tax, the VAT drops from €1,667 to €521, a saving of €1,146. Additionally, these works can be combined with MaPrimeRénov' (subject to income and energy performance conditions), but be careful: MaPrimeRénov' cannot be combined with the 5.5% VAT for the same equipment (the most advantageous option must be calculated on a case-by-case basis).
Pitfalls to avoid
- Non-compliant quote: if the quote does not mention the reduced VAT rate, the professional cannot apply it on the invoice.
- Installation without RGE certification: no reduced rate is possible, even if the equipment is eligible.
- New home: the 5.5% VAT does not apply to homes less than two years old (except in the context of major renovation work).
- Tax declaration: in the event of an audit, the owner must be able to provide proof of the home's completion date (building permit, deed of sale).
