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Dubai Implements 5% VAT on Parking Fees and Salik Tolls

by admin477351

In Dubai, motorists will see an increase in road toll and parking charges due to the implementation of a 5% Value Added Tax (VAT) on Salik toll and Parkin parking services. These adjustments are part of the UAE’s broader financial regulations aimed at aligning these services with the VAT policies already applied to most goods and services in the country.

For those using Salik toll gates, the cost during peak hours will rise from Dh6 to Dh6.30, while off-peak tolls will see an increase from Dh4 to Dh4.20. Additionally, the price for purchasing a Salik tag will go up, with in-person purchases climbing from Dh100 to Dh105 and online purchases increasing from Dh120 to Dh126.

The VAT will also affect all public parking services managed by Parkin. On-street parking rates will increase from Dh2 to Dh2.10 per hour during non-peak periods, and from Dh4 to Dh4.20 during peak hours. Those using premium parking zones will experience higher costs as well, with spaces that previously cost Dh10 per hour now priced at Dh10.50. In Parkin-operated multistorey car parks, the hourly fee will rise from Dh5 to Dh5.25, and the 24-hour rate will increase from Dh40 to Dh42.

Parking subscriptions and permits across Dubai will not be exempt from these changes. For instance, a three-month parking subscription, which was previously priced at Dh1,400, will now cost Dh1,470 following the addition of VAT. These changes reflect the authorities’ efforts to streamline financial operations and integrate VAT requirements into transportation services in Dubai.

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