New 5% VAT rule on Salik use in Dubai set to take effect this June.

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Salik Company PJSC has confirmed that a 5% VAT will be applied to toll gate usage as well as tag activation charges.

Motorists in Dubai will soon be required to pay 5% Value Added Tax (VAT) on toll gate usage fees and Salik tag activation charges, according to an announcement by Salik Company PJSC.

In a post on X, Salik said the 5% VAT will take effect from June 1, 2026, and will apply to both toll gate usage and toll tag activation services.

The company added that all VAT amounts collected will be transferred to the Federal Tax Authority UAE in line 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 Salik gate usage fees and toll tag activation charges,” the company said in a statement.

Salik Company PJSC operates Salik toll system, an electronic toll collection network that allows motorists to pass through toll gates automatically using RFID-enabled tags linked to prepaid customer accounts.

The announcement means motorists will see VAT reflected in toll-related charges and account transactions starting from June.

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