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A company has requested a ruling on whether its hemp products (THC < 0.2%) are subject to the Tobacco Manufacturing Tax. The Directorate-General for Taxes (DGT) has ruled that if these are non-prohibited substances, they are subject to the tax unless an exclusively medicinal function can be justified.
Companies producing hemp-based products must demonstrate a strictly medicinal purpose to avoid being taxed under the tobacco manufacturing regime.
The tax team reviews your specific situation.
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