What action can a business take if they expect to incur low taxable turnover?

Deregistering for VAT is a viable action for a business expecting to incur low taxable turnover. When a business’s taxable turnover falls below the VAT registration threshold, it is allowed to voluntarily deregister from VAT. This can simplify their tax obligations, as it releases them from the requirement to charge VAT on sales and file VAT returns.

By choosing to deregister, the business may also reduce administrative burdens and costs, making it a practical option for those not meeting the criteria for mandatory registration or not benefiting from remaining registered. In scenarios where taxable turnover is consistently low, staying registered can lead to unnecessary compliance efforts that do not provide a financial advantage.

In contrast, filing for bankruptcy is entirely unrelated to turnover expectations and would only be relevant in cases of insolvency. Increasing taxable sales does not address the situation of expected low taxable turnover, and claiming an exemption for all operations might not be applicable, as exemptions typically pertain to specific goods or services rather than the entire range of operations.