July saw changes to the VAT on air conditioning units, with the introduction of the new 23% tax rate on energy equipment, up from the previous 6%, leading to a surge in demand for air conditioning units in the last week of June.
Data from the platform KuantoKusta highlighted a “explosive increase in demand for climate control equipment, with a significant peak between June 26 and July 3, just before the tax change,” as noted in a statement accessed by Notícias ao Minuto.
Compared to the previous week (June 19-25), demand for portable air conditioning models rose by 407%, while demand for fixed models increased by 298%, the statement noted.
Furthermore, “globally, climate control equipment, including fans, saw a growth of 227% during this period.”
The price comparison platform revealed that “even compared to the same period in 2024, the increase in demand was notable: demand for portable air conditioners grew by 440%, and fixed ones by 286%.”
“We witnessed a very significant acceleration in demand the week before the VAT increase for these items. The heat experienced throughout June also contributed to consumers not hesitating to advance their purchases,” explained Liliana Azevedo, marketing director at KuantoKusta, as cited in the same statement.
Despite VAT Shift, Demand Remains High
Despite the VAT change, now set at 23%, the price comparison platform indicates that demand for climate solutions remains “high,” as “comparing activity on the platform from July 1 to 8 with the previous seven days (June 24 to 30), KuantoKusta recorded a 57.06% increase in visits to the climate control category.”
“Even with rising prices, demand remained strong in the early days of July. The emphasis is again on portable models, which saw a 68% increase in demand, reflecting the heatwave,” added Liliana Azevedo, as cited in the same statement.
How Much Did Prices Rise?
It is noted that, “as expected, the new fiscal framework impacted the average prices of equipment, particularly in the fixed models.”
“According to the analysis of the top 10 most popular products, average prices rose from 369.06 euros to 416.80 euros between the weeks of June 24-30 and July 1-8, a difference of 47.74 euros. Only two of the ten models saw a slight price decrease,” the statement noted.
For portable models, “the increase was more restrained: an average of 12.36 euros in the same period. In this segment, only one product from the top 10 saw its average price decrease following the VAT increase.”
“The combination of higher tax burden and increased demand during a critical summer period, with intense heatwaves, is likely to continue pressuring prices. Furthermore, many consumers anticipated their purchases, which might have implications for sales in the coming weeks,” explained the KuantoKusta official.
