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The reduced VAT rate of 6% applied to the purchase and installation of renewable energy equipment, such as solar thermal and photovoltaic panels, will only be in force until 30 June 2025. This measure, introduced by the 2022 State Budget through the inclusion of item 2.37 in List I attached to the VAT Code, aimed to encourage energy efficiency and sustainability by making these technologies more accessible.
According to the Association of Installers of Portugal (AIPOR), the 2025 State Budget does not provide for the continuation of this VAT reduction, referring to the provisions of the 2022 Budget, which determined that the measure would remain in force until 30 June 2025.
It is important to note that components, parts and accessories purchased separately are not covered by this reduction and are subject to the standard VAT rate of 23%.
This change will impact the cost of purchasing and installing renewable energy solutions. It is recommended that consumers and businesses plan their investments taking into account this imminent tax change.
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