Parkin Company PJSC and Salik Company PJSC are aligning with the UAE’s tax framework by transitioning toward VAT application and expanding digital-only payment systems.
Motorists in Dubai will soon be required to pay 5% Value Added Tax (VAT) on parking and toll-related services after both Parkin Company PJSC and Salik Company PJSC confirmed implementation from June 1, 2026.
Parkin Company PJSC said the 5% VAT will apply to 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 authorities.
Meanwhile, Salik Company PJSC announced that 5% VAT will also be applied to toll fees and Salik tag activation charges from the same date. The company added that all VAT collected will be remitted to the Federal Tax Authority UAE in accordance with applicable laws and regulations.
In a separate update, Parkin Company PJSC confirmed that cash payments at parking meters in Dubai will be phased out starting June 1, 2026, as part of the emirate’s broader move toward cashless transactions.
Motorists will still be able to pay using Nol card and other digital payment platforms.
Motorists will still be able to make payments through the Parkin app, SMS services, the Dubai Now platform, and the RTA Dubai app.
Parkin Company PJSC has advised customers to follow its official communication channels for the latest updates and guidance during the transition period.
The new VAT rules and shift to cashless parking are expected to affect motorists across Dubai who use parking and toll services.
