Dubai's Salik to Implement 5% VAT on Toll Fees from June 1

May 22, 2026

33 min

May 22, 2026 06:32

Using Salik in Dubai? New 5% VAT rule starts June 1

## New VAT Implementation

Starting June 1, 2026, Dubai motorists will face a 5% Value Added Tax (VAT) on Salik toll gate usage and tag activation fees. This change was announced by Salik, the company managing Dubai's electronic toll system.

## Tax Collection and Compliance

The collected VAT will be forwarded to the UAE's Federal Tax Authority, ensuring compliance with national tax regulations. Salik's toll system uses RFID tags linked to prepaid accounts, allowing seamless passage through toll gates.

## Broader Implications

This VAT introduction aligns with similar measures, such as the application of VAT on parking services in Dubai, reflecting a broader trend in the region's tax policy adjustments.

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