Bread or not?
According to the Irish Justice, no.
It looks, tastes and feels similar, but a ruling by the Irish High Court recently ruled that the bread served at Subway, the franchise that sells sandwiches in hundreds of countries, cannot be considered as such because of its
high content. in sugar
.
Bookfinders Ltd., a Subway franchisee in Ireland, argued in court that some of its products, such as bread, were not taxed.
That good, according to the chain, should count as a
basic food
and, consequently, be exempt from VAT.
The claim to the judges asked for a refund from February 2004 to December 2005, when they were paying a compound rate of 9.2%.
The bread, however, contains five times more sugar than a normal one, and the Supreme Court noted that: "In this case, there is no doubt that the bread that Subway supplies in its hot sandwiches has a sugar content of 10 % of the weight of flour included in the dough ".
A decisive factor in the strict Irish law that prevents, according to
The Guardian
, that Subway bread is a basic product.
The Irish Value Added Tax Act 1972 makes a distinction between basic foods, including bread, tea, coffee, cocoa or milk and other products such as ice cream, chocolate, pastries, chips , popcorn and roasted nuts.
Subway claimed to have been subject to VAT on the first segment.
"The argument depends on the acceptance that the Subway warmed sandwich contains 'bread' and that, therefore, it can be said that it is food for basic purposes. Since that argument has been rejected, this subsidiary argument must fail," it ruled the Irish Supreme.
Here in Spain, the creation of a possible tax on so-called junk food that the Ministry of Consumption has studied on more than one occasion raises many doubts within the food and beverage sector.
Some associations criticize a possible tax increase "on some foods on the grounds of improving public health."
According to the criteria of The Trust Project
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