UPDATE

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

Salik confirms VAT will apply to toll gate usage and tag activation charges

Last updated:
Nathaniel Lacsina, Senior Web Editor
The company added that VAT amounts collected will be remitted to the UAE’s Federal Tax Authority.
The company added that VAT amounts collected will be remitted to the UAE’s Federal Tax Authority.
Ahmad Alotbi/Gulf News

Dubai: Motorists in Dubai will soon pay Value Added Tax (VAT) on Salik toll gate usage fees and Salik tag activation charges, according to an announcement by the company.

On a post on X, Salik said a 5 per cent VAT will be applied effective June 1, 2026, on toll gate usage fees and toll tag activation charges.

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The company added that VAT amounts collected will be remitted to the UAE’s Federal Tax Authority in accordance with applicable laws and regulations in the country.

“We inform our users that, effective from 1 June 2026, a 5% value-added tax will be applied to the usage fees for Salik gates and the activation fees for toll cards,” the company said in a statement.

Salik operates Dubai’s electronic toll gate system, which enables motorists to pass through toll gates automatically using RFID-enabled tags linked to prepaid customer accounts.

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