I’ll have a VAT tax beef on herb and cheddar please, toasted:
THE SUPREME COURT today ruled that sandwiches made by Subway contain too much sugar to legally be considered bread.
The ruling today arose from an appeal from Bookfinders Ltd, a Subway franchisee, which claimed that it should not have to pay VAT as many products it sells are “staple foods” and should attract a 0% VAT rate.
However, the five-judge court ruled that the sandwiches must attract a rate of VAT due to its sugar content.
The law states that for bread to be considered a “staple product” and not attract VAT, it “shall not exceed 2% of the weight of flour included in the dough”. Subway’s bread has a 10% ratio.
This appeal arises from a claim submitted to the Revenue Commissioners by Bookfinders Ltd in December 2006. In the claim, the Subway franchisee sought a refund for VAT payments made from the period January/February 2004 to November/December 2005 at a rate of 9.2%, which it claimed should instead have been subjected to 0% VAT.
The court ruled “to exclude the bread used by the appellant in their sandwiches from being considered as bread under para. (xii) of the Second Schedule, as the sugar content in the bread exceeded the percentage allowed in the Schedule.
“The Schedule excluded bread from the 0% rate where any of a number of specified ingredients exceeded the allowed percentages.”
Bookfinders argued that all of the ingredients if included, would have to have exceeded the allowed percentage in order to fall outside the 0% rate (and not just the sugar) and into the 13.5% rate. The judges rejected this argument also, agreeing that it was clear that once the allowed percentage was exceeded for any one ingredient, the bread lost the 0% rate.
10% Shit, that ain’t bread, that’s a muffin! I make bread at home all the time, and at most I use a tablespoon or two of sugar to feed the yeast.Report
seriously, ten percent? No wonder we’re all freakin’ fat!Report
From what I understand, one of the many little things that befuddles Europeans about America is why we keep calling cake “bread”. It ain’t just Subway… most American breads are heavy on sugar in a way that makes them taste totally different than their European counterparts.Report
I make stuff like Banana Bread at home, and that isn’t really bread, it’s just a loaf cake.
I’ve made sweet breads (think cinnamon raisin), and that is technically bread.
But bread that is not supposed to be sweet, or a cake, has no business having that much sugar in it.Report
My understanding was higher sugar (and salt) content in American bread was to make it more of a “keeping” loaf – in a country where most of us can’t get to an actual bakery every day like Europeans can.
Still, on the rare occasions I make bread I only put a tiny bit of sugar in (or honey, that will feed the yeast too). But I also have to freeze most of the loaf because in my humid climate a homemade loaf will mold in a couple days.Report
Marie Antoinette would be so confused.Report
What I want to know, do they consider tomatoes to be fruits or vegetables?Report
Props. They consider tomatoes to props.Report
I think this is mainly about levying the tax.Report
or maybe leavening the tax?Report
Well, if you don’t, it’s a flat tax, and we can’t be having that.Report