The government plans to scrap the 21% value added tax rate on solar panels in private homes from next January.
Tax Minister Marnix van Rij put a bill to consultation on Wednesday that will abolish the tax on solar panels and installation work for private households.
EU member states have been able to remove the tax on solar panels since the end of last year.
Currently, homeowners who install solar panels that feed into the national grid can claim the tax rebate, but they must register and file a tax return to benefit.
Van Rij hopes the new measure will reduce paperwork for individuals and the tax office.
The tax relief will not apply to solar panels that have been installed on public buildings or commercial properties.
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