Subway Bread Too Sweet for VAT Exemption: Irish Supreme Court

A Subway franchise’s 14-year battle to have its rolls recognized as a tax-free staple came to an end Tuesday when Ireland’s top court ruled they contain too much sugar to be considered bread.

The Irish Supreme Court’s strict interpretation of staple goods is a blow to the global takeaway chain and other businesses that rely on the value-added tax exemption granted to essential goods across the European Union.

Bookfinders Ltd., a Subway branch in Galway, had argued that despite the high sugar content, the level of fat and other ingredients are below the threshold in the statutory definition of bread. ...