This ZATCA circular clarifies the VAT treatment for Real Estate Loan Portfolio Insurance procured by financial institutions in Saudi Arabia. It confirms that the supply of such insurance is subject to the standard 15% VAT rate. The guide outlines the conditions under which financial institutions are considered the customer and can deduct input tax, emphasising the need to attribute the expense to taxable supplies. It provides criteria for apportionment for mixed-use costs. The circular also clarifies that no onward or nominal supply occurs to the borrower, meaning no output tax obligation arises for the institution, provided no separate charge is levied.