Pay No VAT on Salik in the UAE

The RTA also confirmed that VAT does not apply on toll gates and public transport services.

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UAE residents who had to pay 5% value-added tax (VAT) upon buying Salik recharge cards or tag would be happy to know that they can ask for a refund. The authorities have confirmed that there is no VAT on Salik and anyone who was charged the tax was a mistake.

On January 1, upon activating VAT, some petrol stations and supermarkets charged 5% VAT on Salik which happened due to a system error charging value-added tax on all purchased goods.

As you can see in the picture, the customer was charged Dh105 upon buying Dh100 salik. He told Khaleej Times “I went to buy another Salik recharge card, and when I asked the cashier if I will be charged an extra Dh5, he said no. That’s when I showed him my old bill and asked why I was recharged during my first purchase a week ago,” the resident said. “The manager apologized, and said it was an automatic addition to the system that’s now fixed.”

Please note there is no VAT on Salik and Etisalat and Du recharge cards. The RTA also confirmed that VAT does not apply to toll gates and public transport services.

“Whoever was charged with the extra five percent can show us the bill and we will refund right away,” the staffer said, noting that three customers already approached the station for refunds on Sunday.

“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 mentioned.

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

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