Ireland’s Supreme Court has ruled that Subway sandwiches are too sugary to be classed as ‘bread’ and therefore are not liable for tax exemption.
The court ruled that the sandwiches could not be categorised as a staple food, which would come with a zero VAT rate, rejecting a Subway franchise’s arguments that it was not liable for tax on some of its takeaway products.
The Vat Act 1972 states that the weight of ingredients in bread such as sugar, fat and bread improver shall not exceed 2 per cent of the weight of flour in the dough.
The Act aimed to distinguish between bread, which is considered a staple food and is taxed at zero per cent, and other baked goods made from dough, which are taxed.
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