The U.K. Court of Appeal has dismissed a Subway franchise owner's appeal of earlier Tribunal decisions that their heated sandwiches are subject to the U.K.'s standard 20% VAT rate. The decision upholds previous decisions by the First Tier Tribunal and Upper Tribunal that sandwiches, when heated, are no longer eligible for the zero-rating applied to other foods and must be taxed at the standard VAT rate.
There were essentially two main arguments by the taxpayer in the appeal.
The taxpayer a…