VAT on Salik card purchase, not tariff

DUBAI — There is a five per cent value-added tax (VAT) when you buy a Salik (toll gates) recharge card or tag from a petrol station or supermarket but no extra charge when you recharge your Salik account online or via the RTA website, Khaleej Times found out.

A KT staff bought a Dh100 worth Salik recharge card from petrol station in Dubai on Monday, the first day of VAT implementation, and was asked to pay Dh5 more for a total of Dh105.

Meanwhile, another KT staff recharged his Salik account online and paid only Dh100 for the same amount.

However, there is no VAT on Salik charge — it is still Dh4 deduction from smart tags every time a vehicle passes under these toll gates.

Last month, the Roads and Transport Authority (RTA) clarified that VAT will not be levied on Salik or public transport facilities, after rumours on social media that VAT will also apply on Salik. There are seven Salik gates in Dubai.

“Passengers and commuters of public transport facilities like the buses, Metro, Tram and maritime transport, as well as cab passengers, will not be subject to VAT,” the authority said in a statement to Khaleej Times.

“The authority has always endeavoured to provide all means of convenience and comfort to customers, and encourage and incentivise them to use the various means of transport in the emirate,” the statement added.

Passengers and commuters of public transport facilities like the buses, Metro, Tram and maritime transport, as well as cab passengers, will not be subject to VAT.” RTA