The Dubai parking VAT is now in force, adding 5% to parking tariffs, permits and reservations across Parkin services.
DUBAI: The Dubai parking VAT officially takes effect today, with Parkin Company PJSC implementing a 5% Value Added Tax (VAT) across its paid parking services throughout the emirate.
The move aligns with applicable UAE tax regulations and has been introduced in coordination with relevant government authorities. From 1 June 2026, the tax applies to all parking services operated by Parkin, including on-street parking, off-street parking, seasonal cards, permits and parking reservations.
For motorists across Dubai, the change means eligible parking charges now include VAT at the standard rate of 5%. Parkin says the measure is being implemented to ensure full compliance with the UAE’s tax framework while maintaining transparency for customers using its services.
To support a smooth transition, the company is providing updated guidance through its official communication channels. Customers can access information regarding the tax application through the Parkin mobile application, website, customer experience centre and social media platforms.
The Dubai parking VAT comes into force alongside another significant change in the emirate’s parking ecosystem. In line with Dubai’s Cashless Strategy 2026, cash payments at parking meters are no longer accepted from today. However, motorists can continue paying through nol cards and other approved digital payment methods.
Parkin is encouraging customers to use its mobile application for parking payments and account management. The company says the app offers a convenient and seamless experience while helping users avoid additional costs that may be associated with SMS-based transactions.
The Dubai parking VAT reflects ongoing efforts to align public services with national tax requirements while supporting Dubai’s broader vision for smart city development. Parkin says it remains committed to delivering efficient, customer-focused parking solutions and ensuring all services comply with applicable regulations.
As Dubai continues advancing its mobility infrastructure, the company aims to support residents and visitors through innovative, transparent and digitally enabled parking services.
