October 01, 2020

Anna Murray 

According to a ruling from Ireland's Supreme Court on September 29, the rolls of Subway sandwiches contain too much sugar to be considered bread which needless to pay value-added tax (VAT). The bread is considered a staple food in Ireland and has a zero rate of VAT. 

At first, the case derives from the tax authority’s refusal in 2006 to Bookfinders' request for a refund on its VAT payments made between 2004 and 2005. Bookfinders Ltd, a Subway franchisee in Galway, took its case to the Court of Appeal and lost. Then, Bookfinders appealed its case to Ireland’s High Court.

In accordance with Ireland’s Value-Added Tax Act of 1972, fat, sugar, and other additives cannot constitute over 2% of the weight of the flour content. The five judges of the Irish Supreme Court concluded that the sugar content in Subway sandwiches is about 10% of the flour in the dough for both white and wholegrain rolls. Thus, the fast-food chain’s rolls contain too much sugar to be considered bread. Following the High Court's ruling, the Subway rolls are now subject to a 13.5% VAT tax.

Photo:Webshot.