Dubai announces 5% VAT on Salik, Parkin fees

Starting June 1, a 5 per cent Value Added Tax (VAT) will be applied to parking services provided by Parkin and toll tariff and activation fees under Salik.

The announcement was made following coordination with relevant government authorities and applicable UAE tax regulations.

Both transport providers further noted that the VAT amounts collected will be remitted to the Federal Tax Authority (FTA), with no financial impact on either company. 

Parkin stated that VAT will be applied to on-street and off-street parking, seasonal cards, permits, and reservations. 

The parking service provider also revealed that cash payments at parking meters will also be phased out from June 1, with payment through the nol card still available. 

Parkin advised consumers to use its official mobile application to avoid additional costs associated with SMS payments.

In coordination with relevant government authorities and applicable UAE tax regulations, from 1 June, VAT at 5% will be applied to all parking services provided by Parkin, which includes on-street and off-street parking, seasonal cards, permits and reservations.

To support a… pic.twitter.com/JSvDYWtOFk

— ParkinUAE (@ParkinUAE) May 22, 2026

Starting from 1 June 2026, a 5% Value Added Tax (VAT) will apply on toll fees and Salik tag activation fees.
The VAT amounts collected will be remitted to the Federal Tax Authority (“FTA”) in accordance with the applicable laws and regulations in the United Arab
Emirates. pic.twitter.com/7d5T0teNfv

— Salik (@Salik_ae) May 22, 2026