Dubai motorists will soon have to pay an additional 5 per cent Value Added Tax (VAT) on parking and toll-related services, after Parkin and Salik confirmed the new charges will come into effect from June 1, 2026.
Parkin announced that VAT will apply to all its services, including on-street and off-street parking, seasonal parking cards, permits and reservation services, in line with UAE tax regulations and government directives.
At the same time, Salik confirmed that VAT will also be charged on toll gate fees as well as Salik tag activation charges. The company stated that all VAT collected will be transferred to the UAE’s Federal Tax Authority according to applicable laws and regulations.
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In another major change, Parkin also announced that cash payments at parking meters across Dubai will be completely phased out from June 1, 2026, as part of the emirate’s wider move towards a fully cashless system.
Motorists will still be able to pay parking fees through multiple digital and smart payment methods, including:
• nol cards
• Parkin app
• SMS services
• Dubai Now app
• RTA app
Authorities have advised customers to follow official communication channels for updates and guidance during the transition period.
The combined introduction of VAT and the shift to cashless parking are expected to affect thousands of motorists using daily parking and toll services across Dubai.
