What’s going on?
Subway made the case that it should not have to pay value-added tax — a consumption tax added to a product at every point of sale — on its rolls because they’re bread. Irish law considers bread to be a stable food with a zero rate of VAT.
- But the Irish Supreme Court ruled that Subway’s rolls have a high amount of sugar, which disqualifies them from being bread, BBC News reports.
- This was the case for all of the company’s bread choices, including the Italian white bread, Italian herbs and cheese, nine-grain wheat, hearty Italian, nine-grain multi-seed, and honey oat types.
- Ireland’s VAT Act of 1992 said sugar and fat in bread should not exceed 2% of the weight of the flower. Subway rolls are around 10%.
- The rolls will now have a VAT tax rate of 13.5%.
One more note
Subway’s nutrition facts show that a 6-inch white bread roll has five grams of sugar, which is about the same amount in one Oreo cookie, the New York Post reports,