The French CBD market is entering a new phase of regulatory clarification. For several years, hemp professionals have been operating in a complex environment, at the crossroads of European law, food law, taxation, public health and regulations on products containing cannabinoids.
With the announced tightening of controls around food products containing CBD, one question keeps coming up among traders, distributors and consumers: do the Novel Food framework and the controls of the DGAL have an impact on the VAT rate applicable to CBD flowers and CBD resins?
The short answer is this: the Novel Food Regulation and the DGAL (Directorate General for Food) do not directly set the VAT rate. However, they can have a major indirect impact on how a CBD product is classified. And this classification is precisely one of the key elements in determining whether a product qualifies for a reduced rate or is subject to the standard 20%.
To understand properly, three often confused topics must be separated:
the legality of the CBD,
its classification as food or non-food,
and its tax treatment in terms of VAT.
Novel Food: what exactly are we talking about?
The term Novel Food refers to “new foods” as defined by European regulations. The European Commission explains that a Novel Food is a food that was not consumed in significant quantities in the European Union before May 15, 1997.This date serves as a reference point for determining whether a food or ingredient requires authorization before being placed on the European food market.
In the case of CBD, the subject is particularly sensitive. Cannabidiol can occur naturally in the hemp plant, but products sold on the modern market are not always limited to the raw plant. Many products contain extracts ,isolates ,distillates ,enhanced concentrations of cannabinoids , or preparations intended for ingestion.
It is precisely this transformation that places many CBD products within the Novel Food category. The European Commission's Novel Food catalogue indicates that it is a non-binding guidance tool, but it remains a major reference for national authorities and economic operators.
The European Food Safety Authority (EFSA) also published an update in February 2026 on the safety of cannabidiol as a Novel Food. This publication reiterates that CBD products intended for oral consumption remain inadmissible under the existing Novel Food Regulation until the authorization conditions are met.
In other words, the issue isn't simply whether a product contains CBD. The real issue is how the product is manufactured, how it's presented, how it's sold, and what its intended use is.
DGAL: Why do controls change the game?
The DGAL(Directorate General for Food) is the administration responsible, among other things, for food safety in France. When a product is presented as a foodstuff, a food supplement, an herbal tea, an infusion, or a preparation intended for consumption, it may fall under the control of the food authorities.
According to information published by several media outlets and industry players in May 2026, CBD food products, including oils, herbal teas and candies, are to be subject to stricter controls from mid-May 2026. TV5 Monde notably reported that cannabidiol for food use, such as oils, herbal teas or candies, would be affected by this ban announced from May 15.
This point is crucial: the DGAL (Directorate General for Food) does not directly modify VAT. Its primary role is in ensuring food compliance. However, if an authority determines that a product cannot legally be presented as food, this automatically undermines the tax argument for applying a reduced VAT rate reserved for foodstuffs.
This is where the link between Novel Food, DGAL and TVA becomes strategic.
CBD VAT: what tax logic says
In France, the standard VAT rate is 20%. Some products may benefit from reduced rates, particularly those clearly intended for human consumption.
The BOFiP, the tax doctrine published by the administration, indicates that products intended for human consumption are subject to the reduced rate of 5.5%, subject to the exceptions provided for by law.
This means that a product does not automatically benefit from a reduced rate simply because it is plant-based, natural, agricultural, or sold in a specialty store. The determining factor is its actual and regulated intended use.
To apply a 5.5%, it must be possible to demonstrate that the product is indeed a foodstuff intended for human consumption. This classification must be consistent with the labeling, product information sheet, stated uses, composition, market positioning, and regulatory compliance.
This is precisely where CBD flowers and CBD resins pose a problem.
CBD flowers: 5.5% or 20%?
CBD flowers are the flowering tops of hemp plants that naturally contain cannabidiol. They can be sold within the legal THC limit, provided that applicable regulations are followed. In France and Europe, the generally accepted limit for hemp-derived products is a maximum of 0.3% THC .
For a long time, some operators applied a reduced VAT rate of 5.5% to CBD flowers by presenting them as products intended for infusion or food preparation. This approach was based on a simple logic: if the flower is sold as a hemp herbal tea or an infusion plant, it could be classified as a foodstuff.
But this position is becoming much more fragile today.
Why? Because if a CBD flower is presented as a food product, it potentially falls under food regulations. And if it falls under the food category, the issue of Novel Food status can be raised.
This situation therefore creates a paradox for sellers:
If CBD flower is sold as a food product, the reduced VAT rate may seem more fiscally justifiable, but the product becomes more exposed to DGAL controls and the Novel Food debate.
If CBD flower is sold as a non-food product, for example as an aromatic product, collector's item or plant material not intended for consumption, the Novel Food risk can be reduced, but the argument for the reduced VAT rate becomes much harder to support.
Therefore, in a cautious approach, many professionals now consider that CBD flowers should rather be subject to the normal rate of 20%, except in very specific cases, documented and validated by a tax advisor.
CBD resins: why the risk is even higher
CBD resins , sometimes called CBD hash, CBD pollen or hemp concentrates depending on the product, have a higher level of complexity than flowers.
Unlike raw flower, resin is often the result of a transformation process: mechanical extraction, sieving, pressing, trichome concentration, possible addition of cannabinoids or terpenes, and specific formulation. Even when the product meets the legal THC limit, its processed nature makes it more difficult to assimilate it into a traditional food product.
From a tax perspective, applying a reduced VAT rate of 5.5% to CBD resin therefore appears riskier than to raw flower. To justify a reduced rate, it would be necessary to demonstrate that the resin is genuinely intended for human consumption, that it complies with food law, and that it is not subject to any Novel Food prohibition or lack of authorization.
In practice, this demonstration is difficult.
For CBD resin, the most cautious approach therefore remains the normal level of 20 %.
This caution is all the more justified given that the term “resin” or “hash” evokes, in the public and regulatory imagination, a product far removed from a conventional food item. Even if the product is legal, inspected, analyzed, and compliant with THC standards, its tax classification must remain consistent with its nature, its intended use, and its commercial presentation.
Novel Food and VAT: the trap of the "to be infused" presentation
Many CBD product descriptions state that the flowers or resins are “for infusion only” or “intended for food preparation.” This wording was often intended to ensure a cautious presentation, avoiding any encouragement of combustion.
But in the current context, this wording may create another risk: it explicitly qualifies the product as food.
However, if the product is presented as food, it becomes more logical for a regulatory authority to ask:
Does the product comply with food regulations?
Does it contain hemp extract?
Has it received Novel Food authorization?
Does the labeling comply with applicable food regulations
Are the claims compliant?
Is traceability complete?
Is the VAT rate applied consistent with the product's classification?
This point is central for CBD professionals: a statement intended to secure one regulatory aspect can weaken another aspect.
Saying "to infuse" can help avoid a presentation associated with combustion, but it can also place the product in the food category. And if the product falls into the food category, it must comply with food regulations.
Is the reduced rate of 5.5% still defensible?
It would be an exaggeration to say that the 5.5% limit is absolutely impossible for all hemp products. Some hemp-based foods do exist: hemp seeds, hemp seed oil, hemp flour, and traditional foods made from permitted and historically consumed parts of the plant.
But CBD flowers and CBD resins are not in the same category as hemp seeds or seed oil.
For CBD flowers, the 5.5% limit could potentially be discussed in very specific cases, involving strictly food-grade presentation, full compliance, no added extracts, and a sound tax argument. However, this position is becoming difficult to defend in a context of increased controls.
For CBD resins, defending the 5.5% limit is even more complex. Their form, processing, concentration of active ingredients, and market positioning set them apart from a conventional food product.
The safest position is therefore:
CBD flowers: 20% VAT recommended as a precaution.
CBD resins: 20% VAT strongly recommended.
CBD food products: maximum vigilance regarding Novel Food/DGAL regulations before considering VAT.
Can the DGAL impose a change in VAT?
No, not directly.
The DGAL is not the tax administration. Its role is not to set VAT rates. Its main responsibilities include ensuring food compliance, food safety, labeling, controls, and the possible withdrawal of non-compliant products.
However, its findings can have an indirect consequence. If a product is deemed not to be legally sold as food, then the tax argument for the reduced food tax rate becomes much weaker.
The logic is simple:
A product marketed as food may, under certain conditions, qualify for the reduced rate.
However, a non-compliant food product may be challenged on regulatory grounds.
And a non-food product generally cannot claim the reduced rate reserved for human consumption.
The trader is therefore faced with an important trade-off: he must choose a consistent qualification and apply it to his entire documentary chain.
The real risk: documentary inconsistency
In the event of an inspection, the problem does not always stem from the product itself. It may arise from inconsistencies between documents.
Common example:
A product description states “CBD flower for infusion.”
The invoice applies a 5.5% VAT rate.
The packaging evokes relaxation or the effects felt.
The certificate of analysis shows a cannabinoid concentration.
The website categorizes the product as “premium flowers” or “potent resins.”
The terms and conditions state that the products are not food or intended for consumption.
In this case, the tax authorities may consider the product's classification unclear. And when a product's classification is unclear, the reduced rate becomes more difficult to justify.
Consistency must exist between:
the product sheet,
the labeling,
the invoice,
the site category,
the terms and conditions,
the certificates of analysis,
the usage notices,
the accounting,
the VAT returns,
and the supplier documentation.
What strategy for CBD shops?
For a reputable CBD shop, the priority is to minimize risk. The question isn't simply which concentration will maximize short-term profit. The real question is which concentration can be defended in the event of an inspection.
A prudent strategy is to apply the normal rate of 20% to CBD flowers and CBD resins, unless otherwise advised in writing by a chartered accountant, a tax specialist or a tax ruling.
This approach has several advantages:
It reduces the risk of VAT reassessment.
It avoids basing taxation on a precarious food classification.
It creates consistency with non-food presentation.
It limits exposure to Novel Food debates for products that should not be claimed as food.
It provides greater protection for the company in the event of cross-audits.
Conversely, continuing to apply a 5.5% VAT rate to CBD flowers or resins requires a very strong justification. Simply writing "for infusion" on a product label is not enough. It must be possible to demonstrate that the product is indeed intended for human consumption, complies with food regulations, and that the reduced VAT rate is justified.
Practical guide: CBD flowers, CBD resins and VAT
| Product | Commercial qualification | Novel Food Risk / DGAL | Prudent VAT rate |
|---|---|---|---|
| CBD flower sold as a non-food product | Aromatic product, collection, well-being, plant material | More limited if no consumption is claimed | 20 % |
| CBD flower sold as an infusion | Foodstuff or food preparation | Raised if food safety is disputed | 5.5% debatable, 20% more cautious |
| Classic CBD Resin | Processed or concentrated product | Varies depending on composition and presentation | 20 % |
| CBD resin sold as food | Preparation to be ingested or infused | Very high | 20% recommended, 5.5% very risky |
| CBD oil sold as a food supplement | Oral/Food Product | Very high without Novel Food authorization | VAT is dependent on qualification, but regulatory risk takes precedence |
| CBD gummies, candies, and drinks | CBD Food Products | Very high without Novel Food authorization | Secondary VAT issue compared to the DGAL risk |
What consumers need to understand
For consumers, the VAT debate may seem technical. However, it reveals a broader issue: that of market transparency.
A reputable CBD product should be clear about:
its THC level,
its composition,
its traceability,
its laboratory analyses,
its origin,
its destination,
its limits of use,
and its conformity.
The VAT rate is not simply an accounting detail. It often reflects how the seller classifies their product. A CBD flower sold as a food product, a CBD resin sold as a flavoring product, or a CBD oil sold as a food supplement do not carry the same risks.
This is why consumers should favour shops that are transparent, do not promise medical effects and present CBD products with caution.
What professionals need to remember
For professionals, the message is clear: the time for grey areas is shrinking.
Novel Food regulations do not set the VAT rate, but they make the use of the reduced rate more precarious when it is based on a questionable food classification.
The DGAL (Directorate General for Food) does not set the VAT rate, but its inspections can call into question the presentation of a product as food-related. If this presentation is deemed unacceptable, the argument for the 5.5% rate may also be invalidated.
CBD flowers and CBD resins must therefore be analyzed product by product, taking into account their composition, processing, claimed use, packaging and documentation.
The rule of caution can be summarized as follows:
When a product is classified as food, it must comply with food law.
When a product is not classified as food, it should not benefit from a reduced food VAT rate.
When the classification is ambiguous, the standard rate of 20% remains the most defensible position.
Our take on Lord Of CBD
At Lord Of CBD, we closely monitor French and European regulatory developments to ensure our customers receive clear information. The CBD market needs to move towards greater transparency, traceability, and consistency.
The Novel Food /DGAL issue should not be reduced to a one-off concern. It represents a fundamental shift: the authorities want to more clearly distinguish between food products, supplements, extracts, raw flowers, resins, flavorings, and processed products.
For CBD flowers and CBD resins, the main impact on VAT is therefore indirect but real. The more a product is presented as food, the more it falls under the Novel Food regulations. The more it is presented as non-food, the less justifiable the reduced rate of 5.5% seems.
In this context, the most prudent position for CBD flowers and CBD resins remains the application of the normal rate of 20%, except in special circumstances validated by a tax advisor.
Key points to remember
The Novel Food Regulation does not directly change VAT rates.
The DGAL (French Directorate General for Food) does not set the VAT rate.
However, DGAL inspections can challenge the food classification of a CBD product.
The reduced rate of 5.5% is based precisely on food classification.
For CBD flowers, the 5.5% rate becomes difficult to justify if food compliance is uncertain.
For CBD resins, the 20% rate is the most cautious approach.
Consistency between product information, invoices, labeling, terms and conditions, and accounting records becomes essential.
In case of doubt, it is best to consult a chartered accountant, a tax advisor, or request a tax ruling.
In summary: Novel Food and DGAL do not mechanically change the VAT on CBD flowers and CBD resins, but they strongly reinforce the interest in applying a VAT of 20% when these products cannot be reliably qualified as compliant foodstuffs.
To go further
To understand the European framework applicable to novel foods, the European Commission provides an official page dedicated to the Novel Food, as well as a catalogue of Novel Food status allowing the identification of ingredients considered as novel foods within the European Union.
Regarding cannabidiol, the EFSA has published a scientific update on the safety of CBD as a Novel Food, supplemented by information on the provisional safety level of cannabidiol. This information helps to better understand why CBD products intended for oral consumption remain under close scrutiny by European authorities.
From a tax perspective, the reduced VAT rate applicable to products intended for human consumption is specified in the administrative guidelines published in the BOFiP (). The legal basis for the reduced rate of 5.5% is also found in Article 278-0 bis of the General Tax Code.