New VAT Charges to be Implemented for Dubai Salik
Salik announces new VAT charges on toll gate usage and tag activation fees.
- Publish date: Friday، 22 May 2026 Reading time: 1 min read
Motorists using Salik, Dubai’s electronic toll gate system, will soon see a 5% Value Added Tax (VAT) applied to toll gate usage fees and Salik tag activation charges, effective June 1, 2026.
In an announcement on X (formerly Twitter), Salik confirmed that the VAT will be included in the fees for passing through toll gates and activating new toll tags. The company stated that the collected VAT amounts will be remitted to the UAE’s Federal Tax Authority in compliance with national laws and regulations.
How It Works
Salik operates Dubai’s electronic toll gate system, allowing motorists to pass through toll gates automatically using RFID-enabled tags linked to prepaid accounts. Starting next year, the following fees will be subject to VAT:
- Toll gate usage fees (charged per passage).
- Salik tag activation charges (one-time fee for new tags).
The 5% VAT will be added to these charges, increasing the overall cost for users.
No Changes to Existing Tags
Motorists with active Salik tags will not need to take any immediate action. The VAT will be automatically applied to their prepaid accounts when the new charges take effect. New users activating tags after June 1, 2026, will also see the VAT included in their activation fee.
Why Now?
The introduction of VAT on Salik fees aligns with the UAE’s broader tax policies, ensuring compliance with federal regulations. Salik’s announcement emphasizes its commitment to transparency and adherence to legal requirements, as the collected VAT will be duly remitted to the Federal Tax Authority.
For motorists, this means a small but notable increase in toll costs. While the change may add to expenses, it ensures that Salik’s operations remain fully compliant with national tax laws.