The Supreme Court of Ireland has held that Subway’s breads are subject to value-added tax (VAT) because they contain too much sugar to be considered a staple product. Under the country’s VAT law, bread can contain up to 2% sugar in the flour to be classified as a staple product exempt from the tax; Subway’s breads contain about 10% sugar in the flour for both the white and wholegrain varieties. Following the ruling, the breads will be taxed at 13.5% under the law. The Irish court reached the ruling following a challenge by a Subway franchisee alleging it should not have to pay the VAT.

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For decades, manufacturers, distributors and retailers at every link in the food chain have come to Shook, Hardy & Bacon to partner with a legal team that understands the issues they face in today's evolving food production industry. Shook attorneys work with some of the world's largest food, beverage and agribusiness companies to establish preventative measures, conduct internal audits, develop public relations strategies, and advance tort reform initiatives.

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