New VAT reduction in Belgium on heat pumps

VAT on heat pumps: status at the end of 2025 and outlook for 2026

After a period of reduced rates on heat pump installations, owners of recent homes are currently facing a high VAT rate. This situation is temporary, pending the reintroduction of a reduced rate from the beginning of 2026.

Change in the rate for homes less than 10 years old

For homes less than 10 years old, VAT on the purchase and installation of a heat pump will be reset to 21% in 2025.  
Good news: the federal government plans to reintroduce a reduced rate of 6% from January 1, 2026, for a period of five years (until the end of 2030).
During the transition period (i.e., throughout 2025), the normal rate of 21% will therefore apply to these recent homes.

For homes older than 10 years

For homes that are more than 10 years old, the situation remains more favorable: these homes are still eligible for a reduced rate of 6% for the installation of a heat pump. This is therefore an important difference between homes that are "less than 10 years old" and homes that are "more than 10 years old."

Immediate impact on quotes and invoices

This rate change has direct consequences for projects that are currently being carried out or will be carried out in the future. With an installation budget of approximately €10,000 → €15,000, the difference between 6% and 21% VAT represents a significant additional cost.
For example, if a down payment is made at the end of 2024 and the balance is invoiced in 2025, this could result in the 21% rate being applied to the portion invoiced after January 1, 2025.

Which activities are still eligible for the reduced rate?

Despite the increase in certain cases, some procedures will continue to be subject to the reduced rate of 6%.

• The maintenance and repair of existing heating systems (including heat pumps) remain subject to 6%.
• For homes older than 10 years, the installation of a new heating system (heat pump) remains at 6%.

Non-system-specific elements (e.g., radiators, underfloor heating, thermostats) may also remain subject to 6% under certain conditions. For homes less than 10 years old, however, a rate of 21% applies to the installation of a new heat pump throughout 2025.

Installations in homes older than 10 years

For these older homes, the "reduced rate of 6%" system remains fully applicable, including for new heating systems. This provides a strong incentive to renovate existing systems and switch to renewable energy.

Breakdown of mixed invoices (heat pump + boiler)

When the invoice contains both items that are taxed at 6% (e.g., maintenance work, maintenance of the existing installation) and items that are taxed at 21% (new installation of a heat pump in a home less than 10 years old), a clear breakdown is crucial. Without a detailed breakdown, the tax authorities could apply the 21% rate to the entire amount. With a breakdown, each item can be taxed at its own rate: it is therefore advisable to ask the installer for a separate invoice or a clear breakdown.

What support measures can compensate for these costs?

Given the high VAT rate in 2025, regional premiums will remain an important lever for reducing the bill.

• In Wallonia, Flanders, and Brussels, subsidies are available for the installation of heat pumps.
• These support measures vary depending on the region, the type of installation, and the household income.
• Important: conditions may change, and certain amounts and categories must be verified based on the installation date and billing.

Income requirements to be eligible

The support can be adjusted according to income. Example: in Flanders, the "Mijn VerbouwPremie" portal offers a subsidy of up to 50% of the invoice excluding VAT, depending on the income category. In Wallonia and Brussels, thresholds also apply based on taxable income, the number of dependents, etc.

Examples of amounts and procedures

• For a Walloon household with a modest income, the premiums for installing a heat pump can amount to several thousand euros.
• In Brussels, the application is submitted via the IRISbox counter within a certain period after completion of the work.
• In Flanders, the application must be submitted within a certain period (often 24 months after invoicing) via the designated portal.

How can you anticipate and optimize your project?

Strategic planning is necessary to effectively navigate these VAT changes and maximize savings.

• Given that VAT will be reduced again to 6% on January 1, 2026, for homes less than 10 years old, it may be wise in the current situation to plan the installation after this date if your schedule allows.
• It is useful to request multiple quotes, compare offers, and carefully check delivery times.
• Please note: the installer or supplier may invoice before the date on which the reduced rate comes into effect, which may prevent the 6% rate from being applied. Therefore, pay close attention to the invoice date, the payment date, and the explicit mention of the rate applied.
• It may also be beneficial to take advantage of current offers (discounts, payment facilities, warranty extensions).
• Consult an expert (RESCert-certified installer or equivalent) to correctly size your installation: the insulation of the home, the heating system, and compatibility with photovoltaic panels are important success factors.

VAT increase: a new boost in 2026

The increase in VAT on heat pumps poses a temporary challenge for owners of homes less than 10 years old. However, this transitional measure will not be permanent: from January 1, 2026, a reduced rate of 6% will be reintroduced for these homes, which will be valid for five years.
For homes older than 10 years, the reduced rate of 6% will continue to apply from now on and for an indefinite period.