Ireland’s top court says it knows what bread is, and the stuff Subway uses for its sandwiches isn’t it.
The amount of sugar used in the dough supplied by Subway and used in heated sandwiches exceeds the maximum level of sugar content for bread under Irish law, Supreme Court of Ireland Justice Donal O’Donnell said in a judgment Tuesday, part of a tax case involving one of the chain’s franchisees.
To be considered bread under the Value Added Tax Act, which dates to 1972, sugar can make up no more than 2% of the weight of the flour used to make dough for bread, according to the ruling. Bread that meets the definition isn’t taxed under the law.
Sugar makes up 10% of the weight of Subway’s flour in dough for the heated sandwiches, the judgment says.
“If one ingredient exceeds the limitation, the resulting product falls outside the definition of ‘bread’ for the purposes of the act,” Justice O’Donnell wrote.