Grant Thornton UK LLP
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Subway sandwich shop located in Dublin, Ireland.
istock_subwaysign_doram
Subway sandwich shop located in Dublin, Ireland.

VAT: When bread is cake

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In the UK a cake is a cake for VAT unless it’s a biscuit, or confectionery - but an Irish VAT case has recently found that Subway bread actually qualifies as cake. Julia Garbutt tastes the difference.

15th Oct 2020
Grant Thornton UK LLP
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As always with these types of cases, when the news was announced of the recent decision that Subway rolls are not technically bread, it was met with much interest, humour and discussion about past cases. As the decision also made the national news, I’m sure many people thought that VAT law is barmy, perhaps also remembering previous headlines about the pasty tax or that chocolate coated orange sponge treat (of which I am probably the only VATie who enjoys).

What is not cake

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