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If a business is selling raw fish (zero rated) but the turnover

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If a business is selling raw fish (zero rated) but the turnover is over the threshhold, does the business still has to register for VAT.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am keith, one of the experts on Just Answer, and pleased to be able to help you with your question. In a word yes! If a business turnover, the aggregate of zero, reduced and standard rated supplies, approaches or exceeds 82K [the Turnover Threshold] in any one year then that business must register for VAT. Indeed, in your case you should have registered as soon as you started trading as you make zero rated supplies thus have no output tax to pay, but any input tax can be recovered thus imp[roving your cash flow. I do hope that I have shed some light on your position.
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Satisfied Customers: 3119
Experience: FCCA FCMA CGMA ACIS
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Customer: replied 1 year ago.

Thanks Keith

While there is no output tax due , would there be a fine or penalty for late registration.

Expert:  bigduckontax replied 1 year ago.

There is a minimum penalty of GBP 50 and furthermore: If you registered

Then the penalty rate will be

Not more than 9 months late 5%

More than 9 months but not more than - 18 months late 10%

More than 18 months late. 15% . Full details are in VAT Notice 700/41.

However, an appeal against any penalty will almost certainly be successful as, in your trade in zero rated supplies, there is no loss of revenue for the Department as you have no output tax to pay.

Thank you for your support.

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