Kit Question

Which of the following statements is/are correct? 1. When a business pays for fuel costs for an employee and there is some private use of the vehicle, a VAT charge will be payable even where the full cost of the private fuel is reimbursed by the employee, with output VAT being payable on the reimbursed fuel 2. When a business pays for fuel costs for an employee and there is some private use of the vehicle, a VAT charge will be payable if the employee does not reimburse the employer, with output VAT being due based on a prescribed scale charge. Answer: 1is wrong and 2 is correct. Can you explain 1st statement?