Irish Supreme Court has ruled that Subway bread cannot legally be called ‘bread’.
Due to the high sugar content, none of the 6 breads offered at the fast food chain in Ireland qualify as bread. The high sugar content also means that they cannot be defined as ‘staple foods’.
An Irish Subway franchisee attempted to argue that Subway’s bread is a ‘staple food’, and thus not subject to VAT.
However, in order to be taxed 0 percent, the bread’s fat and sugar content must not exceed two percent of the weight of the flour. This is to ensure that there is a definitive differentiation between ‘bread’, and other baked goods, such as cookies.
Unfortunately for Subway, the sugar content of it’s rolls is around ten percent of it’s weight in flour, and is therefore too sugary to be called ‘bread’. Given the ruling, Subway’s bread is to be taxed at 13.5%.
Essentially, your classic go-to Meatball Sub is non other than a Meat Cake.
Images via Alamy