Subway loses legal challenge over VAT on hot food

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  • those who can't afford the extra 60p will have to go cold turkey

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  • I imagine Subway will be pretty cheesed off with this decision.

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  • I would have thought that it is the temperature at the point of sale that determines the VAT liability not the temperature when the product is eaten. It is common sense . Otherwise how could you possibly document how quickly the products are eaten

    Andersons CA.

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  • Subway have made a right meal of this case.

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  • This verdict is a disgrace. There is no WAY that crap should be considered food.

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  • Yet again the inconsistency of HMRC.
    If this decision is based on the customer's view of wanting a toasted sub then surely GREGGS should be paying VAT on their pasties. It is sheer lunacy to suggest that customers want a cold pasty. How do they get away with it??
    This makes Subway completely noncompetitive.
    To the outsider this makes HMRC look completely bias.

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  • @ Anonymous
    Is it really inconsistent? I had thought the VAT ruling on pasties was that if food is 'kept warm' then it is liable to VAT. I think the pastie argument was that pasties were baked on a regular basis but were NOT kept warm. Therefore a customer may get a hot, warm or cold item depending on how long the food has been on display.
    Subway seem to be physically heating the product directly for each individual and so VAT becomes liable.

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  • Dear All
    I am Subway franchisee with more than 3 stores, been given a 200K VAT bill for toasted sandwich, backdated for three years. I cannot pay that amount and it has affected my health and my life as a young businessman. Due to no fault of mine as a franchisee I get hit with the bill, and all other Subways. I am currently thinking of going into administration or alternatives.
    I feel so angry that Subway is not held liable for this as they should have thought about this before bringing the toaster ovens, I wish I had a solicitor who would take this case on and sue subway for the VAT bill and the pain caused to others and me. I am sure if a good firm of solicitor offered to represent each franchisee for £1000 each and 10% of the winnings, that majority of franchisees like myself would LOVE to take subway to court. The franchise model is not what I bought into; there was no element of VAT on toasted sandwich.
    As a young businessman I have:
    => Lost £500,000 worth of investment
    => My credit score to poor
    => Going to lose a family members house, which are the guarantor of the loan.
    YET NOBODY GETS TO KNOW ABOUT THIS. NO MEDIA, NO LAW SUIT AGAINST SUBWAY....
    I Which someone could help...?

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  • @ Anonymous 11-Oct-2012 5:12pm. Of course punters buy and eat cold pasties. Look in the chiller cabinet of every convenience store and garage across the land and see what Ginsters have there. All designed to be eaten cold or warmed up.

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