Subway sandwich bread, after all, is not bread – say Irish courts
The Supreme Court judges considered that the product contains too much sugar.
At issue was a purely fiscal issue: should Subway stores in Ireland pay VAT on their sandwiches? The argument was simple: essential products such as bread benefit from this exemption and therefore sandwiches should also be covered. The strategy ricocheted.
The five magistrates of the Irish Supreme Court were asked to speak and returned a round no to the company. Worse, they declared that due to the huge amount of sugar used in the dough, sandwiches cannot be equated with bread as “essential goods” for tax purposes.
They cite the IRS law launched in 1972, which states that bread must not exceed two percent of sugar and fat in the total weight of the dough. In the case of Subway, the sugar used corresponds to 10 percent of the dough, either in the normal or whole variety.
“Subway’s bread is, of course, bread. We have been doing it every day fresh in our stores for over three decades and customers return daily for bread sandwiches that smell as good as they know it, ”the company’s spokesman told CNN.
The case that started in 2006 has now reached the final level and is now resolved. Sandwiches will be subject to a 13.5 percent VAT rate.
This is not, however, the only controversy involving the dough used by the multinational. In 2014, criticism forced the company to remove azodicarbonamide, a synthetic chemical regularly used to make sponge plastic mats, such as yoga or camping, from the ingredient list.