News

Dubai announces new VAT charges on parking and Salik

Published

3 months ago

May 22, 2026

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Dubai motorists are set to see a noticeable change in how they pay for parking and toll services from June 1, after both Parkin and Salik confirmed that a 5 per cent Value Added Tax (VAT) will officially apply to several services across the city.

The update means drivers using public parking, toll gates and related services will now pay slightly more as part of the UAE’s tax regulations.

According to Parkin, VAT will apply to on-street and off-street parking, seasonal parking cards, permits and reservation services. Meanwhile, Salik confirmed the same tax will also be added to toll gate charges and Salik tag activation fees starting from the same date.

The companies said the collected VAT will be transferred to the UAE’s Federal Tax Authority in line with existing tax laws.

But the changes do not stop there.

Fully cashless payment

In another major shift, Dubai is also moving one step closer towards becoming a fully cashless city. Parkin confirmed that cash payments at parking meters across Dubai will be phased out from June 1 as part of the emirate’s wider digital transformation strategy.

Drivers will still be able to pay for parking using several digital methods, including:

The Parkin app
SMS parking payments
Dubai Now app
RTA app
Nol cards

The move is expected to make parking payments faster and more streamlined, while reducing the need for cash transactions across the city.

For many motorists, the changes may slightly increase day-to-day driving costs, especially for residents who regularly use paid parking zones and Salik gates during daily commutes.

Dubai has increasingly been expanding smart mobility and cashless services in recent years, with digital transport systems, app-based payments and AI-powered parking technology becoming a larger part of the city’s infrastructure.

Parkin has advised customers to follow its official channels for additional updates and guidance as the new system rolls out.

Related Topics:CashlessDubai Dubai dubainews dubaiparking dubairoads dubaitraffic parkin RTA Salik SmartCity uae VAT

Michael Gomes

With over 35 years of experience in journalism, copywriting, and PR, Michael Gomes is a seasoned media professional deeply rooted in the UAE’s print and digital landscape.

Announcements

Small businesses in the UAE now have tax relief until 2029

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5 hours ago

August 7, 2026

Michael Gomes

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Small businesses in the UAE with annual revenues of up to Dh3 million will continue to be eligible for Small Business Relief under the corporate tax regime until the end of 2029.

The Ministry of Finance said on Friday that Ministerial Decision No. 131 extends the period during which eligible businesses can benefit from Small Business Relief to cover tax periods ending on or before December 31, 2029.

The relief was introduced to help reduce the corporate tax compliance burden for smaller businesses and start-ups that meet the eligibility requirements.

Dh3 million threshold remains unchanged

The existing annual revenue threshold of Dh3 million, set under Ministerial Decision No. 73 of 2023, will continue to apply.

The relief applies to tax periods beginning on or after June 1, 2023 and, following the latest amendment, will remain available for subsequent tax periods ending on or before December 31, 2029.

Eligible taxable persons with annual revenue of up to Dh3 million can claim Small Business Relief, subject to meeting the conditions and requirements outlined in the corporate tax legislation.

The relief enables qualifying businesses to benefit from simplified corporate tax compliance requirements.

More time for small businesses

The extension provides eligible small businesses and start-ups with additional tax periods to benefit from the relief while continuing to meet the Dh3 million revenue threshold.

The Ministry said the decision is part of its efforts to support smaller companies and entrepreneurs, strengthen the business environment, and encourage sustainable growth and expansion.

News

UAE public holiday announced: 3-day weekend coming up on August 28

Published

6 hours ago

August 7, 2026

Michael Gomes

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Planning your next long weekend? The UAE has confirmed Friday, August 28, as a public holiday for employees in both the public and private sectors.

The holiday commemorates Prophet Muhammad’s (PBUH) birthday, an occasion included among the UAE’s official public holidays. As the date follows the Islamic calendar, the timing changes from year to year.

A three-day break for many residents

With the holiday falling on a Friday, employees who follow a Monday-to-Friday working week can enjoy three days off:

Friday, August 28: Public holiday
Saturday, August 29: Weekend
Sunday, August 30: Weekend

That means residents can make the most of the break with a short trip, a staycation or a relaxed weekend at home.

Another UAE holiday is coming

The next major public holiday on the UAE calendar will be Eid Al Etihad, with celebrations and the official holiday scheduled for December 2 and 3.

News

What the UAE’s new vape excise price means for consumers and retailers

Published

12 hours ago

August 7, 2026

Michael Gomes

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The UAE Ministry of Finance has introduced a new rule that sets a minimum excise price for liquids used in electronic smoking devices.

Beginning September 1, vaping liquids will be subject to a minimum excise price of AED 1 per millilitre.

The ministry confirmed that the existing minimum excise prices for cigarettes, water pipe tobacco (shisha), and other tobacco products will remain unchanged.

According to the ministry, the decision aims to improve tax compliance, respond to developments in the tobacco and vaping industry, and create a more consistent pricing framework across tobacco and electronic smoking products.

The UAE will also continue applying its 100% excise tax on all tobacco products covered under the country’s excise tax regulations.