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According to the Supreme Court of Ireland, the rolls used in Subway’s hot sands have too much sugar to be called food.

In a case on how the bread is taxed, Ireland’s highest court made the decision.

The U.S. company’s Irish franchisee said that the rolls it uses in heated sandwiches do not cost VAT.

But the court ruled that they should not be taxed as bread, which is listed as a “staple commodity” with zero VAT, due to the amount of sugar in the rolls.

Ingredients in bread such as sugar and fat do not exceed 2% of the weight of flour in the dough under Ireland’s VAT Act of 1972.

The five judges, who were considering an appeal by Bookfinders Ltd, a Subway franchisee based near Galway, determined that the sugar content in Subway sandwiches for both white and wholegrain rolls is around 10 percent of the flour in the dough.

“Subway bread, of course, is bread,” the Subway spokesman said.

“For more than three decades, we have been baking fresh bread in our stores and our visitors come back every day for sandwiches made with bread that smells as good as it tastes.”

Bread is considered a staple food under Irish law and has a zero VAT fee. The rolls are subject to tax at 13.5 percent following the ruling.

The case stems from the Ireland Tax Authority’s decision in 2006 to deny Bookfinders’ appeal for a refund of VAT payments made between 2004 and 2005.

After an appeal commissioner upheld the denial of a refund by the tax authority, Bookfinders brought the case to the High Court, where it lost before going to the Court of Appeal, where it still failed to do so.