This ZATCA guideline details the transition of real estate supplies from taxable to exempt status effective 4 October 2020, following the introduction of the Real Estate Transaction Tax (RETT) at 5%. While real estate sales are exempt from VAT, commercial leasing remains taxable at 15%. The circular introduces an alternative proportional deduction method for licensed Real Estate Financiers, allowing them to exclude high-value exempt real estate sales from the apportionment formula. This ensures that the recovery of residual input tax on overheads accurately reflects the taxable portion of banking and finance operations, clarifying Article 51 of the Implementing Regulations.