End of the reduced VAT rate on air-conditioning systems installed in homes

Article 16 of the 2010 Finance Act adds air-conditioning systems to the list of large equipment excluded from the reduced VAT rate on work in homes more than two years old (Article 279-0 bis of the General Tax Code). The work itself stays at the reduced rate, but the supply of the air-conditioning system is taxed at the standard rate, like boilers, lifts or sanitary equipment. The measure applies to transactions whose chargeable event occurs on or after 1 January 2010.