zero-rated supplies

Hi Jilly,

How on zero-rated supplies there will be vat incurred ??

Thanks,

Value Added Tax
Question
7. Barbara is registered for VAT and is preparing her VAT return for the three-month period ended 31 March 2024.

Barbara incurred input VAT of £1,338 on purchases related to zero-rated supplies and input VAT of £600 related to standard-rated supplies.

What amount of input VAT should Barbara account for on her VAT return for the three months ended 31 March 2024?

A.£600
B.£1,938
C.£1,338
D.£738
The correct answer is B.

Input VAT = £(600 + 1,338) = £1,938