The Supreme Court has rejected arguments by a Subway franchisee that it is not liable for VAT on certain of its take away products, including teas, coffees and heated filled sandwiches. The appeal by Bookfinders Ltd, based in Tuam, Co Galway, included consideration of whether the bread sold in Subway sandwiches fell outside the statutory definition of bread intended under the Vat Act 1972 to attract a zero VAT rate. The five judge court ruled the bread in Subway's heated sandwiches falls outside that statutory definition because it has a sugar content of 10 per cent of the weight of the flour included in the dough. It lost there, and also lost on appeal to the Court of Appeal, but the Supreme Court agreed to hear a further appeal because the issues concerning construction of the 1972 Act. The Appeal Commissioner also correctly held Subway heated sandwiches were not subject to the zero per cent rate, he ruled.

Source: Irish Independent September 29, 2020 20:03 UTC