Salik 5% VAT from June 1, 2026: New Dubai Toll Charges & Tag Activation Fees Explained

Yes. Starting June 1, 2026, a 5% VAT will be added to all Salik toll gate usage fees and Salik tag activation charges. The underlying toll tariff (Dh4 per gate) remains unchanged, but you will now pay Dh4.20 including VAT. Parkin will also apply 5% VAT to all parking services from the same date, and cash payments at parking meters will end.

When Does the New Salik VAT Start?

The 5% VAT on Salik toll tariffs and tag activation fees will take effect on June 1, 2026.

All toll crossings from this date will include VAT. Crossings made before June 1 are not affected.

How Much Will Salik Cost After VAT?

Why Is Salik Adding VAT Now?

The UAE has a federal value-added tax (VAT) system. Effective June 1, 2026, Salik and Parkin are bringing their services into full compliance with the Federal Tax Authority (FTA) regulations.

Salik confirmed that the VAT is a pass-through item collected on behalf of the FTA. The company said: "The VAT amount will be remitted to the Federal Tax Authority in accordance with the applicable laws and regulations in the UAE".

Will This Affect My Existing Salik Balance?

No, your existing balance remains intact.

The VAT applies only to future toll usage fees and tag activation fees. Funds already in your Salik account are not subject to retroactive VAT. However, all toll crossings from June 1 onward will include the 5% tax.

What About Retrospective VAT (July 2022 - May 2026)?

The FTA required Salik to retrospectively apply VAT for the period from July 1, 2022, to May 31, 2026.

However, under a pre-existing agreement between Salik and the RTA, the RTA will fully compensate Salik for this retrospective amount, resulting in no financial impact on Salik or its customers.

Salik stated: "As per the previously agreed mechanism, the company confirms that the Retrospective VAT amount, for the period of July 1, 2022, till May 31, 2026, will be fully compensated by RTA, resulting in no financial impact to Salik for this period".

Parkin Parking VAT Also Starts June 1: What You Need to Know

Parkin, Dubai's largest parking operator, will also implement a 5% VAT on all parking services from June 1, 2026. This includes :

• On-street and off-street parking
• Seasonal parking cards
• Permits and reservations

Additionally, cash payments at parking meters will be phased out on June 1. Motorists can still pay through :

• nol cards
• Parkin app
• SMS
• Dubai Now app

How This Impacts Your Monthly Commute (Example Calculation)

If you cross 4 Salik gates per day (typical Dubai commute):

Salik Q1 2026 Performance, Key Numbers

Tag activation fees increased 6.1% in Q1 2026 to reach Dh12.2 million, supported by an 8.4% year-on-year increase in registered active vehicles. Toll usage fees totalled Dh625.5 million in Q1 2026, representing a 6.0% decline, primarily due to softer traffic trends during the quarter.

Key Dates to Remember for June 1, 2026

FAQ

1. When does the new Salik VAT start?

June 1, 2026. All toll crossings from this date will include 5% VAT.

2. How much will Salik cost after VAT?

Dh4 per gate + 5% VAT = Dh4,20 per gate.

3. Will the existing Salik balance be taxed?

No. VAT applies only to future usage and tag activation fees.

4. Does VAT apply to Salik fines?

Fines are generally subject to VAT under UAE tax law. Check your fine statement for VAT inclusion.

5. Is Parkin also adding VAT?

Yes. Parkin will apply 5% VAT to all parking services from June 1, 2026.

6. Can I still pay for parking with cash?

No. Cash payments at parking meters will be phased out from June 1. Use nol cards, Parkin app, SMS, or Dubai Now app.

7. Will the RTA compensate for retrospective VAT?

Yes. The RTA will fully compensate Salik for retrospective VAT (July 2022 – May 2026), so there is no financial impact on the company or customers.