Oct 1, 2020
Subway rolls ruled too sugary to be bread in Ireland
The rolls used in Subway's hot sandwiches contain too much sugar to be considered bread, according to Ireland's Supreme Court. Ireland's highest court made the ruling in a case about how the bread is taxed. The court ruled that because of the amount of sugar they contain, they cannot be taxed as a "Staple product" at a zero rate of VAT. Under Ireland's VAT Act of 1972, ingredients in bread such as sugar and fat should not exceed 2% of the weight of flour in the dough. The five judges, who were considering an appeal by Bookfinders Ltd, a Subway franchisee based near Galway, concluded that in Subway sandwiches the sugar content is around 10% of the flour in the dough for both white and wholegrain rolls. In Irish law, bread is considered a staple food and has a zero rate of VAT. Following the ruling, the rolls are subject to tax at 13.5%. The case stems from a decision by Ireland's tax authority in 2006 to refuse Bookfinders' request for a refund on VAT payments made between 2004 and 2005.
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