Add news
March 2010
April 2010
May 2010June 2010July 2010
August 2010
September 2010October 2010
November 2010
December 2010
January 2011
February 2011March 2011April 2011May 2011June 2011July 2011August 2011September 2011October 2011November 2011December 2011January 2012February 2012March 2012April 2012May 2012June 2012July 2012August 2012September 2012October 2012November 2012December 2012January 2013February 2013March 2013April 2013May 2013June 2013July 2013August 2013September 2013October 2013November 2013December 2013January 2014February 2014March 2014April 2014May 2014June 2014July 2014August 2014September 2014October 2014November 2014December 2014January 2015February 2015March 2015April 2015May 2015June 2015July 2015August 2015September 2015October 2015November 2015December 2015January 2016February 2016March 2016April 2016May 2016June 2016July 2016August 2016September 2016October 2016November 2016December 2016January 2017February 2017March 2017April 2017May 2017June 2017July 2017August 2017September 2017October 2017November 2017December 2017January 2018February 2018March 2018April 2018May 2018June 2018July 2018August 2018September 2018October 2018November 2018December 2018January 2019February 2019March 2019April 2019May 2019June 2019July 2019August 2019September 2019October 2019November 2019December 2019January 2020February 2020March 2020April 2020May 2020June 2020July 2020August 2020September 2020October 2020
News Every Day |

Subway sandwiches ‘contain too much sugar’ to be legally considered bread, Irish judge rules

SANDWICHES from Subway contain too much sugar to be considered bread, according to a new Irish court ruling. 

Ireland’s Supreme Court made the decision this week after one Subway franchise-holder challenged whether VAT was due on the sandwiches given they are made from bread. 

Alamy
An Irish judge has ruled that Subway’s bread contains too much sugar to be considered bread for VAT purposes [/caption]

Under Ireland’s VAT Act 1972, food that is considered to be a “staple”, such as bread, attracts a 0% VAT rating.

But the five-judge court ruled that bread used by the popular fast food chain contains too much sugar to be considered to fall under the definition of bread and therefore attracts the reduced rate of VAT at 13.5%.

To attract a 0% VAT rating ingredients in bread, such as sugar and fat, cannot exceed 12% of the weight of flour in the dough.

The particular case was brought Irish Subway franchisee, Bookfinders Ltd, based in Tuam, Co Galway, following a 2006 decision by Ireland’s Revenue refusing the company a refund for VAT payments.

Bookfinders argued it was due a refund on tax paid between early 2004 and late 2005.

But Mr Justice Donal O’Donnell said the clear intention of the Act is to distinguish between bread as a “staple” food and certain other baked goods made from dough.

VAT is a tax on businesses though and it’s up to them whether or not to pass on these charges to customers in the the price they pay.

It’s unclear if prices will change for Subway fans in Ireland as a result of this ruling – The Sun has asked Subway to confirm.

It’s worth pointing out that while this ruling was made in Ireland’s highest court it doesn’t apply to the UK, which has its own separate VAT system.

In the UK, whether food attracts VAT depends on whether it’s served hot or cold and on whether it’s served to eat-in or takeaway.

Broadly speaking, in the UK most food served to be eaten in store incurs VAT, as do hot takeaways. Cold takeaways, however, are VAT-free.

The Sun has asked Subway if it charges VAT when it toasts sandwiches and whether this is then passed on in the form of higher prices.

We’ll update this story if we get a response but back in 2017 the chain did trial passing on the VAT charge to UK customers who ordered hot Subs to takeaway.

We’ve also asked Subway if it uses the same bread in the UK as it does in Ireland.

In a statement on the court ruling the fast-food chain said: “Subway’s bread is, of course, bread.

“We have been baking fresh bread in our stores for more than three decades and our guests return each day for sandwiches made on bread that smells as good as it tastes.”  

In the UK, VAT has been slashed from 20% to 5% for businesses in the hospitality and tourism industries until January 12, 2021 under coronavirus measures first announced in chancellor Rishi Sunak’s mini-Budget.

KFC, McDonald’s and Wetherspoons are among the high street chains to pass on these VAT savings to customers.



Read also

'Cold as ice': Birthday boy Alexander Volkov celebrates in style with second-round finish of Walt Harris at UFC 254

Manoel Theatre reopens its doors to socially distanced audiences

Hilary Duff just announced she's pregnant with her third child



News, articles, comments, with a minute-by-minute update, now on Today24.pro




Today24.pro — latest news 24/7. You can add your news instantly now — here