For all the drivers in Dubai, you’re in for a surprise with this one. From June 1, both Salik and Parkin will begin applying a new 5% VAT charge across several services. This means your daily commute, parking sessions, and even Salik tag activations will cost slightly more. As we’ve still got a few days to enjoy the cheaper charges before your next parking and toll payment, here’s everything you need to know!
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Salik To Add 5% VAT On Tolls & Tag Fees
Dubai’s toll gate operator, Salik, also announced that it will begin applying a 5% VAT charge starting June 1, 2026. The VAT will apply to toll tariffs as well as Salik tag activation fees. Salik clarified that the actual toll tariff structure itself will remain unchanged. Rather, VAT is simply being collected on behalf of the FTA under UAE tax regulations. Salik also notes that the introduction of VAT will not affect its profitability or overall financial position going forward.
There’s More! Parkin To Apply 5% VAT Across Parking Services
Dubai’s largest parking operator, Parkin, confirmed that a 5% VAT charge will officially apply to all of its parking-related services starting June 1, 2026. The update covers both on-street and off-street parking across Dubai. It also covers seasonal parking cards, permits, reservations, and other related services offered by the company. According to the company, the VAT implementation is being introduced in coordination with the RTA. The Federal Tax Authority (FTA) will receive the new tax amount directly.
Brace Yourselves…Caue Parkin Is Also Reviewing Future Parking Tariff Changes
Alongside the VAT announcement, Parkin revealed that it had previously submitted a proposal to the RTA earlier this year. So far, the proposed changes include updates to seasonal card pricing and parking tariffs. These changes are intended to better align with the variable parking pricing system introduced earlier in 2025.
The company explains that the proposals are designed to reduce pricing gaps. Simultaneously, they will still maintain long-term fairness for customers, Parkin, and the RTA. The proposals are currently under review and would require final approval from the relevant Dubai authorities.
As much as we hate to be the bearer of bad news. Unfortunately, your Dubai driving routine is officially getting a tiny bit more expensive from June 1. Between parking fees, toll gates, permits, and tag activations now carrying VAT, motorists across the city will probably start noticing those extra fils adding up pretty quickly. And then there’s the ongoing discussion of updating parking tariffs later this year. But until we receive confirmation, keep your Salik balance topped up and your parking apps ready! And as always, follow Gulf Buzz for all the latest Dubai updates and traffic changes!
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