I recently signed up a new groceries distributor (0% output vat) client who registered for vat just a couple of months ago. While doing their first return I found out that the quarterly turnover was greater than the 83k threshold! I don't think that it suddenly shot up last quarter so have requested last 9 months of the bank. statements to find out when did they went over the threshold as last year's total turnover was 80k only.
As they are in food distribution business they will be receiving vat refund on expenses.
My question is what is the panelty for them in this situation?