Germany begins issuing tax stamps for THC-free hemp flowers

A German company has begun marketing THC-free CBD flowers under the tobacco products regime, a first in Germany.

The decision to tax these products under the tobacco taxation law, rather than treating them as narcotics under the german cannabis law (KCanG), marks a turning point. It recognizes hemp containing THC levels as a legitimate consumer good, not as «cannabis» under criminal law.

«The tax stamp is not just a victory for Sanaleo, but a major step forward for the entire industry,» said Paul Portius, CEO of Sanaleo, in a press release issued by the BvCW. «We are proving that the legal marketing of hemp flowers is possible in Germany, transparently and safely.»

The flowers sold do not contain THC, according to the company's description.

CBD flowers in question

From prohibition to legal recognition

Historically, even CBD flowers with THC content below the threshold of 0.3 % were at risk of being seized or classified as narcotics by German customs, due to the «intoxication clause», a restrictive reading of German law that suggests the possibility of becoming drugged by consuming large quantities of industrial hemp. This clause enabled the authorities to block hemp sales on the sole basis of a theoretical potential for abuse.

Today, the issuing of tax stamps by customs suggests a crucial change in the interpretation of the regulations. Products containing 0.0 % THC are no longer considered cannabis, making them marketable and taxable. According to the BvCW, this provides much-needed legal certainty and paves the way for economic growth in the CBD sector.

«At the end of the day, issuing tax stamps brings more tax revenue, more legal certainty and more freedom of economic action,» said Lisa Haag, coordinator for technology, trade and services at the BvCW. «The Federal Ministry of Finance can create a win-win-win situation for consumers, German SMEs and society as a whole.»

Legal battles and defending the sector's interests

This follows several years of legal pressure and advocacy. Weedo, a German CBD company, was instrumental in securing a ruling from the Düsseldorf Finance Court in November 2024. The court ruled that tax stamps should be issued for THC-free hemp flowers, although the case is still under appeal to the Federal Finance Court.

«We deeply regret that our sector has been denied this important market access for so long and unnecessarily,» stated Philipp Ferrer, Managing Director of Weedo. «It's cost some people their livelihood in this industry.»

While Weedo's legal victory was a catalyst for regulatory change, the BvCW continues to push for a new regulatory framework. wider application tax stamps, especially for flowers containing up to 0.3% of THC, the threshold that arbitrarily distinguishes between hemp and cannabis in most European countries.

Inconsistencies persist

Despite the progress made regulatory inconsistencies persistent. The Customs Department indicated that it could still rely on previous legal interpretations, meaning that companies located outside the Bielefeld region could continue to face a situation of uncertainty.

In addition, the «intoxication clause» remains in force after the failure of the attempt to pass hemp liberalization law under the previous government. However, several court rulings, including one by the Fribourg regional court, have confirmed that hemp with a low THC content is not cannabis, and that the refusal to grant tax stamps may undermine the free movement of goods in Europe.

«In the context of issuing tax stamps in Sanaleo, refusing to issue tax stamps in Weedo will now be legally indefensible,» argued Dr Ferdinand Weis, lawyer and BvCW board member.