UAE motorists will pay an additional 30 fils or 20 fils per crossing through toll gates from next month, following the introduction of VAT on toll charges
From June 1, Dubai motorists will pay 5 per cent value-added tax (VAT) on every Salik toll gate crossing, after the operator announced its decision on Friday, May 22.
As a result, UAE motorists using the emirate’s 10 toll gates will be required to pay VAT on top of the existing Dh6 and Dh4 toll charges. Here is what motorists need to know:
When will VAT come into effect?
VAT will be applied from June 1, 2026.
How much tax will motorists pay?
Motorists will pay 5 per cent VAT for every Salik toll gate crossing.
Which services will be taxed?
VAT will apply to Salik toll gate usage tariffs as well as tag activation fees.
The introduction of VAT means each trip through Salik gates will now cost slightly more, increasing overall daily commuting expenses for regular road users in Dubai.
How much motorists will pay for Salik toll usage after VAT
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Before VAT: Dh6 per trip during peak hours (6am–10am and 4pm–8pm)
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After VAT: Dh6.30 per trip during peak hours (6am–10am and 4pm–8pm)
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Before VAT: Dh4 per trip during off-peak hours (10am–4pm and 8pm–1am)
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After VAT: Dh4.20 per trip during off-peak hours (10am–4pm and 8pm–1am)
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No tariff applies between 1am and 6am
If you cross two Salik gates each way during peak hours, that amounts to four toll crossings per day. At the revised rate of Dh6.30 per trip, after 5 per cent VAT, the daily toll costs Dh25.20. Over a typical 21-working-day month, this adds up to Dh529.20. Under the pre-VAT rate of Dh6 per trip, the same commute would cost Dh504 per month. This means that the introduction of VAT will increase the monthly commuting expense by Dh25.20 for this travel pattern, a modest but recurring rise in costs for regular Salik users.
Where will VAT amounts be deployed?
According to Salik Company, all VAT collected from motorists will be remitted to the Federal Tax Authority (FTA) in accordance with applicable UAE laws and regulations.
What about VAT on earlier trips?
Salik Company clarified on May 15 that 5 per cent VAT has been applied retrospectively to toll revenue and associated charges from July 1, 2022, to March 31, 2026.
As a result, the total VAT dues payable to the FTA amount to approximately Dh471 million, including relevant VAT amounts and associated late payment penalties.
Will motorists pay retrospective VAT?
No. Salik Company said earlier this month that the retrospective VAT liability due to the FTA will be reimbursed by the Roads and Transport Authority Dubai, meaning motorists will not be charged for past VAT obligations.
