Ireland: Supreme Court said this week that Subway sandwiches are more pastry than bread.
The court said that bread in the franchise’s sandwiches do not meet the legal definition of bread and are, therefore, subject to a value added tax of 13.5%. Ireland’s VAT Act of 1972 states that ingredients in bread such as sugar and fat should not exceed 2% of the weight of flour in the dough, the five-judge bench said.
A spokeswoman of Subway said: “Subway’s bread is, of course, bread. We have been baking fresh bread in our restaurants for more than three decades and our guests return each day for sandwiches made on bread that smells as good as it tastes.”
Subway removed the flour-whitening agent azodicarbonamide or ADA from its bread after an online petition. The chemical is also used in yoga mats and 500 other items, including more than 130 brands of bread, stuffing, pre-made sandwiches and snacks, according to an analysis at the time by the Environmental Working Group, a nonprofit group focused on corporate accountability.