FOOD SERVICES | Staff Reporter, UK

Subway begins charging VAT on warm sandwiches

West Midlands stores are testing a different structure for menu-pricing to clarify the pricing changes.

Following a change to VAT introduced by George Osborne in 2012, the chain is now explicitly charging customers VAT on hot sandwiches. 

In a statement, Subway said, “Since changes to VAT in 2012 (the pasty tax), Subway has repeatedly tried to challenge the law in order to protect the customer. Subway franchisees have been absorbing the VAT cost, charging a single price for food, whether hot or cold or eat-in or take-away.”

“Currently, Subway stores in the West Midlands are testing a different structure for menu-pricing. The dual-pricing menu is similar to what customers see on other high-street chain menus, which ensures that customers pay the lowest price for products which do not attract VAT.”

Subway stores are individually owned and operated, so prices may vary.

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