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Standard rated materials amounted to £32,400, of which £600 were taken by the sole trader for personal use.
I think the input vat would be 6360 i.e. after deducting 600 from 32400 and then calculating input vat. but in the technical article value added tax part 1 example 12 the input vat has been calculated as 6480 i.e. calculating 20% on 32400 without deducting 600.
Why is it so Is it incorrect
Also why would output vat be charged on 600
Both your answer and the one shown in the article are correct – they are just alternative ways of getting the same outcome!
You have done what I would also have done and simply treated the input tax on the private use purchase as irrecoverable and therefore got net input VAT recovered as £6,360 whereas the answer has firstly shown input tax on the full purchases as £6,480 and then shown output tax of £120 (600 x 20%) and therefore also has net input tax of £6,360 (6480 – 120).