CBD Flower Sales Now Subject to Tobacco Monopoly Regulations

In a recent ruling by the Administrative Court of Austria (VwGH), it has been determined that CBD flowers containing less than 0.3% THC are classified under tobacco tax regulations. Consequently, the Federal Ministry of Finance (BMF) asserts that the sale of these CBD products is also subject to the tobacco monopoly by law.

According to the Tobacco Monopoly Act, only licensed tobacco retailers are permitted to sell products that fall under this regulatory framework, which excludes hemp shops from participating in such sales. This prohibition extends to automated vending machines as well. The BMF has cautioned that selling untaxed tobacco products can result in significant legal repercussions.

The BMF is currently reviewing a constitutional opinion presented by Professor Mayer; however, it has emphasized that such a report cannot overturn existing sales prohibitions. As it stands, CBD shops are not allowed to sell smokable hemp products per the current interpretation of the law by financial authorities.

Adhering to legal standards and judicial decisions in Austria, the BMF has highlighted that privately commissioned expert opinions do not alter the prevailing legal situation. Since late March, the Austrian customs authorities have conducted 59 inspections nationwide, with findings being processed for tax and legal implications.

The Tobacco Monopoly Act mandates that small retailers obtain their products exclusively from licensed wholesalers. The approval process for distributing CBD products through these wholesalers is presently underway, though it remains uncertain when these permits, which aim to ensure consumer safety and quality control, will be finalized.

For inquiries, please reach out to the Federal Ministry of Finance Press Office at (+43 1) 514 33 501 031 or via email at bmf-presse@bmf.gv.at.