New VAT Regulations for Dubai Salik Tolls: What Drivers Should Expect
Starting June 1, 2026, Dubai motorists will see a slight increase in their daily commuting costs as Salik, the emirate’s exclusive toll operator, begins applying a 5 percent Value Added Tax (VAT) to its services. This tax will be levied on both toll gate usage and the initial tag activation fees. Consequently, a standard peak-hour trip that currently costs Dh6 will rise to Dh6.30, while off-peak trips will increase from Dh4 to Dh4.20. All collected tax revenue will be directly remitted to the Federal Tax Authority in full compliance with UAE financial regulations.
It is important to note that while Salik is addressing a retrospective VAT liability covering the period from July 2022 to March 2026—totaling approximately Dh471 million—regular road users will not be impacted by these past dues. The Roads and Transport Authority (RTA) has confirmed it will cover these historical tax obligations, ensuring that motorists are only responsible for the VAT applied to their travels from the June 2026 effective date onward.