Belgium: more details on the regulation of CBD cannabis

We reported in late April—before the Belgian media, in fact—that Belgium had decided to Regulate CBD cannabis in the same way as tobacco, effectively legalizing the product which was already being sold in many stores without clear and specific rules. In this regard, the country adopted a pragmatic approach to the legality of selling non-psychoactive hemp flowers, in accordance with European legislation and as long as the THC does not exceed 0.2% in the finished product.

We received several questions following the publication of the article. We therefore contacted the appropriate departments. Their response is reproduced below.

What taxes will be levied on CBD cannabis? What will the tax rate be on the finished product?

CBD cannabis, with a THC content of less than 0.2%, is to be considered «other smoking tobacco.».

The excise taxes levied on this product are therefore as follows:

• an ad valorem excise tax of 31.50% of the retail price stated on the tax stamp and
• a special excise tax of 48.3083€ per kilogram

There are also a VAT rate set at 21% of the retail price listed on the tax sign. Since the retail price includes tax, the VAT is calculated on 100/121 of the retail price listed on the tax sign. Furthermore, import duties must also be collected.

What are the rules regarding packaging?

Product promotion, labeling, and packaging of tobacco products fall under the jurisdiction of from the Federal Public Service for Public Health. The’Royal Decree of February 5, 2016 regarding the manufacture and marketing of tobacco products (Belgian Official Gazette of March 3, 2016) addresses this issue.

Will the varieties sold be limited to the industrial hemp varieties listed in the European catalog? Must the flowers come from Belgian hemp, or can they be imported—from Switzerland, for example?

The origin of hemp flowers is irrelevant for tax purposes.

Is it possible to sell online?

Pursuant to Article 13 of the aforementioned Royal Decree of February 5, 2016, the online sale and purchase of tobacco products is prohibited.

Do Belgian law enforcement agencies have a tool to distinguish CBD cannabis from regular THC cannabis?

Through an analysis conducted by the Customs and Excise Laboratory, it is entirely possible to determine the THC content.