In a significant regulatory update, بارکن will implement a 5% value-added tax (VAT) on its public parking services starting June 1, 2026. This initiative aligns with the UAE’s existing laws and reflects the company’s commitment to compliance. As a result, customers utilizing بارکن’s various parking offerings need to be aware of the upcoming changes to pricing structures.
On May 22, 2026, بارکن officially announced the introduction of this new tax on all parking services. This implementation encompasses a wide range of offerings, such as on-street and off-street parking, seasonal subscriptions, permits, and reservation services. Despite the introduction of this tax, بارکن emphasized that the basic parking rates will remain unchanged for customers. The VAT will be collected separately and forwarded to the Federal Tax Authority, ensuring transparency and adherence to legal provisions.
Addressing financial implications, بارکن clarified that the introduction of the VAT in June 2026 is not expected to significantly impact the company’s financial position going forward. Furthermore, the company indicated that compensation for the VAT retroactive from February 1, 2024, to May 31, 2026, will be fully covered by the Roads and Transport Authority (RTA) per an established compensation mechanism. This arrangement ensures that بارکن will not face any financial burden during this specified period.
بارکن also reiterated its unwavering dedication to upholding the highest standards of regulatory compliance and transparency. The company assured stakeholders that it would keep the market informed about any significant updates in accordance with established regulations and directives. As بارکن navigates this transition in the tax landscape, customers can expect continued clarity and adherence to best practices in service delivery.