This ZATCA circular clarifies the VAT treatments for vehicle insurance in Saudi Arabia. It establishes that all vehicle insurance premiums and related fees are subject to the standard 15% VAT, in line with the principles of Article 29 of the VAT Implementing Regulations. The guide details the distinction between non-taxable indemnity payments for third-party claims and taxable supplies for comprehensive claim repairs where the insurer is the customer. It further explains the VAT implications for deductibles, the non-taxable nature of depreciation, and the conditions under which transferring a salvaged vehicle becomes a taxable supply.