Parkin Implements 5% VAT on All Dubai Parking Services Starting June 1

Dubai’s public parking operator, Parkin, has announced that a 5% Value Added Tax (VAT) will be applied to all parking services across the emirate effective June 1, 2024. The move follows the company’s transition to a public joint-stock company and its recent listing on the Dubai Financial Market (DFM). Scope of the New Tax The 5% VAT will be added to the standard hourly parking fees, as well as seasonal parking permits and reserved parking spaces. Drivers using public parking zones managed by Parkin will see the tax reflected in their payments via SMS, the Parkin app, and physical parking meters located throughout Dubai. Currently, parking rates in Dubai start at AED 2 per hour in non-prime areas and AED 4 per hour in prime zones. The application of VAT means a standard AED 2 fee will rise to AED 2.10, while an AED 4 fee will become AED 4.20. Seasonal permits, which allow for long-term parking at fixed rates, will also see a 5% increase in their total cost. Transition to Public Entity Parkin is the largest provider of paid parking facilities in Dubai, managing approximately 197,000 paid parking spaces across the city. This fiscal adjustment comes as the company operates under its…