Dubai Parking and Salik to Implement 5% VAT from June 2026

May 22, 2026

49 min

May 22, 2026 06:31

Dubai paid parking update: Parkin to apply 5% VAT from June 1

## Introduction of VAT on Parking and Toll Services

Starting June 1, 2026, Dubai motorists will experience a 5% Value Added Tax (VAT) on parking and toll services. This change comes as Parkin and Salik align with UAE's tax regulations.

## Affected Services

The VAT will apply to various services offered by Parkin, including on-street and off-street parking, seasonal parking cards, permits, and reservation services. Salik will also introduce VAT on toll fees and tag activation charges.

## Transition to Cashless Payments

In addition to the VAT implementation, Parkin will phase out cash payments at parking meters from June 1, 2026. Motorists will need to use digital payment methods such as nol cards, the Parkin app, SMS, Dubai Now, and the RTA app.

## Compliance and Updates

Both Parkin and Salik have stated that the VAT collected will be remitted to the UAE's Federal Tax Authority. Motorists are encouraged to stay informed through official communication channels for guidance during this transition.

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