VAT On Salik Usage: How Much More Will Motorists Pay?

2026-05-22 05:10:27

(MENAFN- Khaleej Times)

Motorists in Dubai will pay an additional Dh0.30 and Dh0.20 per trip through toll gates from next month, following the introduction of VAT on toll charges

By: Waheed Abbas

Salik Company, the exclusive toll gate operator in Dubai, clarified on Friday that it will begin applying 5 per cent value-added tax (VAT) from June 1, 2026.

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As a result, motorists using the emirate's 10 toll gates will be required to pay VAT on top of existing charges. Here is what motorists need to know

When will VAT come into effect?
VAT will be applied from June 1, 2026.

How much tax will motorists pay?
Motorists will pay 5 per cent VAT.

Which services will be taxed?
VAT will apply to Salik toll gate usage tariffs as well as tag activation fees.

The introduction of VAT means each trip through Salik gates will now cost slightly more, increasing overall daily commuting expenses for regular road users in Dubai.

How much motorists will pay for Salik toll usage after VAT

. Dh6 per trip during peak hours (6am–10am and 4pm–8pm) before VAT
. Dh6.3 per trip during peak hours (6am–10am and 4pm–8pm) after VAT
. Dh4 per trip during off-peak hours (10am–4pm and 8pm–1am) before VAT
. Dh4.2 per trip during off-peak hours (10am–4pm and 8pm–1am) after VAT
. No tariff applies between 1am and 6am

Where will VAT amounts be deployed?

According to Salik Company, all VAT collected from motorists will be remitted to the Federal Tax Authority (FTA) in accordance with applicable UAE laws and regulations.

What about VAT on earlier trips?

Salik Company clarified on May 15 that 5 per cent VAT has been applied retrospectively to toll revenue and associated charges from July 1, 2022, to March 31, 2026.

As a result, the total VAT dues payable to the FTA amount to approximately Dh471 million, including relevant VAT amounts and associated late payment penalties.

Will motorists pay retrospective VAT?

No. Salik Company said earlier this month that the retrospective VAT liability due to the FTA will be reimbursed by the Roads and Transport Authority Dubai, meaning motorists will not be charged for past VAT obligations.

Salik announces 5% VAT from June 1 on toll tariff, tag activation fees Dubai's Parkin announces 5% VAT on all parking services starting June 1 Higher toll usage, fine revenues boost Salik's 2025 profit to Dh1.55 billion

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