Dubai: Starting June 1, a 5 per cent Value Added Tax (VAT) will be applied to parking services provided by Parkin and toll tariff and activation fees under Salik.

The announcement was made following coordination with relevant government authorities and applicable UAE tax regulations.

Both transport providers further noted that the VAT amounts collected will be remitted to the Federal Tax Authority (FTA), with no financial impact on either company. 

Parkin stated that VAT will be applied to on-street and off-street parking, seasonal cards, permits, and reservations. 

The parking service provider also revealed that cash payments at parking meters will also be phased out from June 1, with payment through the nol card still available. 

Parkin advised consumers to use its official mobile application to avoid additional costs associated with SMS payments.