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

Dubai motorists will soon pay a 5 per cent Value Added Tax (VAT) on parking and toll-related services, after both Parkin and Salik confirmed the implementation of VAT from June 1, 2026.

Parkin said the 5 per cent VAT will apply across all its services, including on-street and off-street parking, seasonal parking cards, permits and reservation services, in line with UAE tax regulations and in coordination with relevant government authorities.

Meanwhile, Salik announced that VAT will also be introduced on toll fees and Salik tag activation charges from the same date. The company said VAT collected will be remitted to the UAE’s Federal Tax Authority in accordance with applicable laws and regulations.

Cash parking payments to end in Dubai

In a separate update, Parkin confirmed that cash payments at parking meters will be phased out from June 1, 2026, as part of Dubai’s wider cashless strategy.

Motorists will still be able to pay through nol cards and digital platforms, including:

• Parkin app

• SMS

• Dubai Now

• RTA app

Parkin has advised customers to check its official communication channels for updates and guidance during the transition period.

The new VAT rules and cashless parking changes are expected to impact motorists using parking and toll services across Dubai.