Subway bread has officially been described as confectionery.
The judge has ruled that the bread served at Subway can not in fact be defined as bread because of its high sugar content. Therefore, it should thus be classified as confectionery
The ruling followed a court case where Ireland’s Subway argued that the bread used in their sandwiches counted as a staple food and was therefore, exempt from VAT.
However, as the court pointed out, Ireland’s Value-Added Tax Act of 1972 draws a distinction between staple foods and “more discretionary indulgences” such as ice-cream, chocolate, pastries, crisps, popcorn and roasted nuts.
The main issue is the amount of sugar in the subway bread. The law says that the amount of sugar in bread “shall not exceed 2% of the weight of flour included in the dough”.
Subway’s bread, however, contains five times as much sugar, around 10% of the weight of the flour included in the dough.