In today's wtaf news, a court has ruled that Subway bread isn't actually bread.
According to Ireland's Supreme Court, which has ruled whether Subway's bread should be subject to VAT, the level of sugar in the sandwich chain's rolls means they cannot be taxed as bread (which has zero VAT in Ireland).
It all came about when a Subway franchisee based near Galway, known as Bookfinders Ltd, said it shouldn't be paying VAT on its rolls and requested a VAT refund way back in 2006.
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Under Irish Law, bread is seen as a staple food and therefore isn't subject to VAT. However, to comply, according to Ireland's VAT Act of 1972, sugar and fat in bread should not exceed two per cent of the total weight of the flour within the dough.
But the ruling judges in the case have said that the sugar content in Subway's rolls is around 10 per cent, in both its white and wholegrain bread, which way surpasses the two per cent threshold and therefore will be subject to 13.5 per cent tax instead.
The ruling stemmed from a decision made in 2006 by the Revenue Commissioners who refused the company's request for a VAT refund between 2004 and 2005.
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"There is no dispute that the bread supplied by Subway in its heated sandwiches has a sugar content of 10% of the weight of the flour included in the dough, and thus exceeds the 2 per cent specified," the judgement read.
A spokesperson for Subway 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."
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Tyla has reached out to Subway for comment.
Featured Image Credit: Instagram/SubwayTopics: News, Food And Drink