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A German CBD company is the first to receive a tax stamp from Customs for its THC-free CBD flowers, marking a breakthrough that shows Germany recognizes such products can be legally marketed as industrial hemp.
Announced by the CBD wholesaler Sanaleo and confirmed by the German Cannabis Business Association this month, the issuance of the tax stamp sets a precedent that could potentially redefine the legal and tax framework for CBD flowers in the European country.
CBD in the European Union is categorized as a novel food, meaning companies need authorization to market their products. In Germany, CBD oils with a THC content below 0.3% are legal, while CBD flowers intended for smoking are not, though they may be sold for non-smoking purposes.
Therefore, the General Customs Directorate of Neustadt an der Weinstraße’s decision to issue a tax stamp for Sanaleo’s CBD flowers is pioneering in the German CBD industry. In practical terms, it means the company’s CBD flower products are now subject to tobacco tax in addition to the 19% VAT.
But symbolically, as the German Cannabis Business Association explained in a press statement, the tax stamp proves that the product is marketable as industrial hemp, and it is not considered adult-use cannabis.
Paul Portius, CEO of Sanaleo, explained in a press statement that the company underwent two years of preparation and extensive applications, and the outcome marks a “breakthrough for the entire industry.” Meanwhile, Lisa Haag, Department Coordinator for Technology, Trade and Services at the BvCW, said that “issuing tax stamps will generate more tax revenue, provide greater legal certainty, and provide greater economic freedom.”
However, despite issuing the tax stamps to Sanaleo, the association highlighted that the General Customs Directorate of Neustadt an der Weinstraße informed them it intends to adhere to its established legal practice without further elaborating on what this means.
Another CBD company, Weedo, is still waiting for tax stamps for its CBD flower products after winning a judgment at the Düsseldorf Finance Court, which obliges customs to issue tax stamps. The case is still pending appeal before the Federal Finance Court, signaling that the legal situation regarding the sale of CBD flowers remains inconsistent.
The Legal Grey Zone Surrounding CBD Flowers Across Europe
The first CBD products equated to tobacco products come amid a new wave for Germany in the cannabis industry.
Germany legalized recreational cannabis in 2024 for personal use only, with cannabis associations popping up across the country where people can grow plants. However, the reform doesn’t include the sale of such products, although the country has started procedures to launch a pilot program of controlled sales in certain municipalities to assess the effects of legal cannabis sales on public health.
The situation for CBD flowers in Europe varies by state. Earlier this year, the Austrian Administrative Court ruled that dried hemp flowers with a THC content of up to 0.3% are subject to a tobacco tax, although their sale is restricted to tobacco shops. Meanwhile, in Italy, the government is trying to ban CBD flowers, which could cost the Italian economy nearly €2 billion and affect over 22,000 workers.
“}]] The issuance of the tax stamp sets a precedent that could potentially redefine the legal and tax framework for CBD flowers in Germany. Read More
