01/06/2026
💄Salik and VAT: What Changes from 1 June 2026?
If you drive in Dubai, you may have already seen the announcement from Salik.
Starting from 1 June 2026, toll charges, parking fees processed through Salik, and tag activation fees will be subject to 5% VAT.
🚗 What does this mean in practice?
✅ Every Salik toll crossing will now attract an additional 5% VAT.
✅ Salik tag activation fees will be subject to VAT as well.
🅿️ Salik Parking transactions will also include VAT where applicable under the new framework.
The VAT collected will be remitted to the Federal Tax Authority in line with UAE VAT legislation.
For businesses, this raises a practical question:
📌 Are you capturing Salik tolls and parking charges correctly in your accounting records?
For VAT-registered businesses using vehicles for taxable business activities, the VAT component may become recoverable, subject to the normal input tax recovery rules and proper supporting documentation🚨
This may look like a minor change.
But for businesses with fleets, sales teams, delivery operations, site visits, or frequent travel across Dubai, these small transactions can accumulate into a noticeable amount over the year.
Sometimes compliance is not about major contracts.
Sometimes it is about hundreds of small daily transactions that quietly impact your VAT position.
Have you already updated your accounting and expense management processes for the new Salik VAT treatment?
✍🏻 From your most profAssional accountant and registered Tax Agent💄