Berlin, 2025-05-15: Sanaleo, a leading CBD brand in Germany, has announced via the German Cannabis Business Association that it is the first wholesaler in Germany to receive the official tax stamp for THC-free “CBD flowers.” In addition to the 19% VAT, these products are now also subject to tobacco tax. The BvCW and Sanaleo welcome this development, as the tax band confirms that the goods are legally marketable as industrial hemp. These products are not classified as “cannabis” under the German Cannabis Act (KCanG), which is the legal basis for taxation.

Despite granting tax stamps to Sanaleo, the General Directorate of Customs in Neustadt an der Weinstraße informed the BvCW that it intends to uphold its previous legal practice. What this means for the broader market remains uncertain.

In a decision dated 2022-06-23 (Ref. 5 StR 490/21), the Federal Court of Justice ruled that defatted hemp flowers with only trace amounts of THC are not considered narcotics. However, even after the KCanG came into force, some authorities still argue that industrial hemp with low but detectable THC levels could be misused for intoxication purposes and therefore should be treated as “cannabis.” In other EU countries, including Austria, Luxembourg, and Belgium, imposing tobacco tax on smokable industrial hemp flowers has been common for some time. In Germany, the Bielefeld Main Customs Office has now issued tax stamps at least for declared THC-free hemp flowers.

Paul Portius, CEO of Sanaleo, stated:
“The tax stamp is not only a success for Sanaleo but a breakthrough for the entire industry. We are proving that legal industrial hemp flowers are possible in Germany—transparent and safe. After two years of intense preparation and comprehensive applications, the first THC-free varieties can now officially be sold as taxed herbal smoking products. A national rollout is planned for July. We will continue working with the BvCW to drive forward substantial improvements in the industrial hemp sector.”

Lisa Haag, Head of Technology, Trade, and Services at the BvCW, added:
“This decision is a step in the right direction. After all, issuing tax stamps results in more tax revenue, more legal certainty, and greater economic freedom. The Federal Ministry of Finance can create a win-win-win situation for consumers, small and medium-sized businesses, and society as a whole through a directive to customs.”

A ruling secured by Weedo from the Düsseldorf Fiscal Court on 2024-11-27 (Ref. 4 K 584/24 VTa – not yet final) requiring customs to issue tax stamps is still under appeal before the Federal Fiscal Court.

Philipp Ferrer, CEO of Weedo, commented:
“We are very pleased that customs now appears to have changed its legal stance that industrial hemp with non-detectable THC levels is generally non-taxable. We of course welcome this and believe the ongoing case before the Federal Fiscal Court will be significantly influenced by this development. It is deeply regrettable that such an important market access was denied to our industry for so long and without cause—costing livelihoods. We congratulate Sanaleo on this great success and see it as a major step toward normalization.”

Dr. Ferdinand Weis, lawyer and BvCW board member, stated:
“In light of the issuance of tax stamps to Sanaleo, the refusal to grant them to Weedo is now legally indefensible. We will now push intensively for the issuance of tax stamps even for products with detectable THC levels—typically up to 0.3%—and for the removal of the so-called ‘intoxication clause.’ Unfortunately, the Industrial Hemp Liberalization Bill proposed by the previous coalition government did not reach final adoption due to the coalition’s collapse. The intoxication clause therefore remains part of the KCanG. However, recent decisions by the Freiburg Regional Court (2024-11-04, Ref. 3 Qs 132/22 – final, unpublished) and the Düsseldorf Fiscal Court (2024-11-27, Ref. 4 K 584/24 VTa – not final) show that industrial hemp with low THC content is not cannabis, and that the denial of tax stamps violates the EU’s free movement of goods.”

The BvCW continues to advocate for the abolition of the “intoxication clause,” using the draft Industrial Hemp Liberalization Bill as a strong legislative template.