VAT On Car Parking In Dubai: Here Is How Much More Motorists Will Pay

Parkin Company, the largest provider of paid public parking facilities and services in Dubai, on Friday announced the implementation of 5 per cent value-added tax (VAT) from June 1, 2026.

Ahead of implementation, and to support a smooth transition, motorists in the UAE are advised to refer to official communication channels for the latest updates regarding VAT application.

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Here is what motorists need to know about the new tax and how it will affect parking costs.

When will Parkin levy VAT?

VAT will be applied from June 1, 2026.

How much tax will motorists pay?

Motorists using public parking will pay 5 per cent VAT.

Will VAT be levied on both on-street and off-street parking?

Yes, VAT will apply to both on-street and off-street parking services.

How much motorists will pay for parking after VAT in Dubai

Parkin Company has clarified how 5 per cent VAT will affect parking charges from June 1, 2026.

Parking charges before and after VAT

. Dh4 non-peak roadside parking (before VAT) → Dh4.2 after VAT
. Dh6 peak roadside parking (before VAT) → Dh6.3 after VAT
. Dh5 per hour multi-storey parking (before VAT) → Dh5.25 after VAT
. Dh40 for 24-hour multi-storey parking (before VAT) → Dh42 after VAT
. Dh24 premium peak-hour roadside parking (Zone AP) before VAT → Dh25.2 after VAT
. Dh10 per hour JLT Code parking (before VAT) → Dh10.5 after VAT

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

No. There will be no financial impact on the company.

Parkin Company clarified that retrospective VAT from February 1, 2024, to March 31, 2026 will be fully reimbursed by the Roads and Transport Authority Dubai to Parkin.

No, motorists will not be required to pay any retrospective VAT.

Motorists already pay Dh0.30 when paying via SMS. There are no additional fees for payments made through the smart application or WhatsApp.

Parkin Company said that in line with Dubai's Cashless Strategy for 2026, cash payments at parking meters will be phased out effective June 1, 2026. Payment via nol card will remain available. Customers are encouraged to download and use the Parkin mobile application, which offers a more seamless payment experience and helps avoid additional costs associated with SMS payments.

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