What impact will the new coalition agreement have on the HVAC industry?
GreenHome
Economy
After months of negotiations, we finally have a new government and therefore a new coalition agreement. Here you can find the most important plans for our sector.
Heat pump remains at 6% VAT
VAT on the supply and installation of a heat pump was already temporarily reduced from 21% to 6% by the previous government. With this, they hoped to convince even more individuals to switch to renewable energy sources. December 31, 2024, this rule expired, but the new government now decided to require the favorable VAT rate for 5 years.
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VAT on gas and fuel oil boiler rises
Since 2025, natural gas connections have been banned in new construction projects in Flanders.* Are you going to renovate? Then you can still request a new connection. However, the government wants to fully commit to renewable energy and is therefore increasing the VAT for supply and installation of a fossil fuel boiler from 6% to 21% for homes older than 10 years.
VAT on coal is also going from 12% to 21%.
*The ban on natural gas connections has applied in Flanders since 2025. In Wallonia it will only be banned from 2035, and in Brussels there are currently no plans for a ban.
VAT on coal is also going from 12% to 21%.
*The ban on natural gas connections has applied in Flanders since 2025. In Wallonia it will only be banned from 2035, and in Brussels there are currently no plans for a ban.
All demolition and reconstruction projects at 6% VAT
For private individuals, VAT on demolition and reconstruction projects was already permanently reduced from 21% to 6%. However, if you bought a new home or apartment through a construction promoter, who demolished an existing building to do so, you were still charged 21% VAT. In fact, property developers and construction promoters could not take advantage of the reduced VAT rate.
The new government has now decided that all demolition and reconstruction projects will fall under the 6% VAT rate. However, there are some conditions: the property must be the only owner-occupied dwelling for five years, and the habitable area must not exceed 175 m² (previously it was 200 m²).
The new government has now decided that all demolition and reconstruction projects will fall under the 6% VAT rate. However, there are some conditions: the property must be the only owner-occupied dwelling for five years, and the habitable area must not exceed 175 m² (previously it was 200 m²).
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