Salk and Parkn Implement VAT on Tariff Fees in Dubai

Salk and Parkn, listed on the Dubai Financial Market, have begun applying a five percent value-added tax (VAT) on their tariff fees and associated services. This marks a new step towards enhancing transparency and tax compliance in Dubai. This change will support the resources of the Federal Tax Authority while maintaining the stability of the base tariff without any adjustments. Additionally, the effective implementation of the tax ensures the long-term financial position of the companies.

Application Details from Salk

Salk announced in a statement that the tax will be applied to fees related to the tariff and activation fees for tariff cards. The company confirmed that it will collect this tax on behalf of the Federal Tax Authority. Salk stated that the implementation of the tax will not affect the company’s profits or financial position in the future.

In a related context, Salk announced that it would apply the tax retroactively on tariff revenues and associated fees for the period from July 1, 2022, until the end of the first quarter of 2026. The amount due from this application is estimated to be around 471 million dirhams, and the company reported that the Roads and Transport Authority will fully compensate it for this amount.

Impact on Parkn

Parkn has also begun applying a five percent value-added tax on the tariffs for public vehicle parking services. This tariff includes roadside parking, lot parking, seasonal subscriptions, permits, and reservations. Parkn confirmed that the base tariff will remain unchanged, and the implementation of the tax will not affect its financial position in the future.

In revealing its plans, Parkn indicated that it will apply the VAT retroactively on public parking revenues and seasonal cards starting from February 1, 2024. As a result, the company will voluntarily disclose a total amount of approximately 78 million dirhams to settle with the Federal Tax Authority by April 30, 2026.