Using Salik in Dubai? New 5% VAT rule starts June 1
Motorists in Dubai will soon have to pay Value Added Tax (VAT) on Salik toll gate usage fees and Salik tag activation charges, according to a new announcement by the company.
In a post shared on X, Salik confirmed that a 5% VAT will come into effect starting June 1, 2026.
What Will Be Affected?
The new VAT rule will apply to:
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Salik toll gate usage fees
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Salik toll tag activation charges
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Salik also stated that all VAT amounts collected will be transferred to the UAE’s Federal Tax Authority in line with the country’s laws and regulations.
Official Statement by Salik
“We inform our users that, effective from 1 June 2026, a 5% value-added tax will be applied to the usage fees for Salik gates and the activation fees for toll cards,” the company said in its statement.
Salik operates Dubai’s electronic toll gate system, allowing motorists to pass through toll gates automatically using:
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RFID-enabled Salik tags
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Prepaid customer accounts linked to vehicles
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The system helps ensure smooth and cashless travel across major roads in Dubai.
What Drivers Should Know
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The VAT will officially start from June 1, 2026
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Daily commuters may notice a slight increase in travel expenses
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The rule applies to both toll usage and new tag activations
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