Salik toll gates

Salik Company PJSC, Dubai’s exclusive toll gate operator, confirmed on 22 May 2026 that VAT at 5% now applies to:

  • Toll gate usage charges (per crossing)
  • Salik tag activation fees

For drivers, this means a standard AED 4 toll now costs AED 4.20, while a peak-hour AED 6 toll costs AED 6.30. Tag activation fees are also subject to VAT.

Salik stated that the VAT does not affect its profitability, as the collected amounts are passed directly to the Federal Tax Authority. The company also confirmed that any VAT due for the period between 1 July 2022 and 31 May 2026 will be covered by the Roads and Transport Authority (RTA), leaving Salik with no related financial liability.

Parkin parking services

Parkin, Dubai’s largest public parking operator, made the same announcement on 22 May 2026. The 5% VAT applies across all Parkin-managed services, including:

  • On-street and off-street paid parking
  • Seasonal cards and permits
  • Reservations

For example, a parking space that costs AED 6 per hour now costs AED 6.30 after VAT. Parkin said the change was introduced in line with UAE tax regulations and in coordination with government authorities.

A separate development also takes effect from 1 June 2026: cash payments at Parkin meters are being phased out. Going forward, parking must be paid through digital methods — the Parkin app, RTA channels, or card payment where available.

What this means for residents and businesses

For drivers, the increase is relatively small per trip but can add up for those who regularly use toll roads or paid parking. VAT is automatically added to Salik charges, so drivers should make sure their account balance is sufficient.

Businesses that operate vehicle fleets, reimburse parking or toll costs, or use seasonal parking permits may see a small increase in transport expenses and should account for this in their budgets.

The VAT applies to all vehicles using Salik toll gates or Parkin-managed parking facilities, regardless of where the vehicle is registered in the UAE.

Context

The UAE introduced VAT at 5% in January 2018, but toll and parking fees were excluded from the system. Salik listed on the Dubai Financial Market in 2022 and Parkin launched shortly after — neither was included in the VAT framework at the time. From 1 June 2026, both became subject to the standard rate.

This change comes after Dubai introduced variable parking tariffs in April 2025, which increased average parking costs in some zones from AED 2.01 to AED 3.03 per hour. The VAT charge is applied on top of the existing parking fees.