Using paid parking in Dubai? Parkin confirms new 5% VAT from June 1
New tax covers permits, reservations and seasonal parking cards
DUBAI – Motorists in Dubai are set for another change to their commuting costs after Parkin announced that a five percent value-added tax will apply to all parking services from June 1, 2026.
The measure will cover a wide range of services offered by Dubai's largest parking operator and comes as authorities continue introducing adjustments across the emirate's mobility sector.
The Dubai-listed company said the move is being implemented in coordination with relevant government authorities and in line with applicable UAE tax regulations. Customers were encouraged to follow official communication channels for updates during the transition period.
Services covered
The new VAT charge will apply across both on-street and off-street parking services. Seasonal cards, permits and reservations are also included within the updated framework.
The announcement follows earlier discussions regarding possible revisions to parking tariffs and seasonal card structures.
In coordination with relevant government authorities and applicable UAE tax regulations, from 1 June, VAT at 5% will be applied to all parking services provided by Parkin, which includes on-street and off-street parking, seasonal cards, permits and reservations.
— ParkinUAE (@ParkinUAE) May 22, 2026
To support a… pic.twitter.com/JSvDYWtOFk
In February, Parkin disclosed that it had formally submitted a request to Dubai's Roads and Transport Authority proposing a range of adjustments that could increase average public parking tariffs if approved.
The company said the suggested changes were designed to address pricing gaps and align with the variable pricing system introduced earlier.
Tariff changes
The proposal also sought to maintain the existing discount structure while creating a fairer long-term balance for customers, Parkin and the RTA.
Parking charges across Dubai have already undergone significant shifts over the past year. Average hourly paid parking costs increased sharply during the third quarter of 2025 after variable pricing measures took effect.
The weighted average hourly tariff reached Dh3.03 between July and September 2025, compared with Dh2.01 during the same period a year earlier, representing a 51 percent increase.
Parkin said the RTA had acknowledged receipt of the proposals and would undertake a detailed review before seeking guidance and final approval from Dubai's Executive Council.
Expansion plans
Alongside the VAT update, Parkin outlined an ambitious outlook for 2026.
The operator expects to expand its public parking portfolio by approximately 5,500 to 7,500 additional spaces this year.
Revenue from the public parking segment is projected to range between Dh560 million and Dh610 million, up from Dh524.5 million in 2025.
The company also reported strong annual financial results, posting a net profit of Dh625.5 million for 2025, an increase of 48 percent.
— ParkinUAE (@ParkinUAE) May 22, 2026
Separately, Parkin confirmed that cash parking payments at meters will be phased out from June 1 as Dubai continues advancing its wider cashless strategy, with motorists expected to increasingly rely on nol cards and digital platforms including the Parkin app, SMS, Dubai Now and the RTA app.