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Can you claim VAT on parkingin the UAE?

Last reviewed

Can you recover the VAT?
Depends
VAT charged
5%
Corporate tax
Deductible

Recoverable for business trips, including Parkin since June 2026. Blocked for commuter parking.

Still being confirmed. Parkin's 5% VAT applies to Dubai public parking. Whether public parking in Abu Dhabi (Mawaqif) and Sharjah carries VAT isn't settled, so only claim VAT shown on a receipt with a TRN.

When you can claim the VATand when it's blocked

You can claim

  • Parking for a business trip or client visit is recoverable.
  • Since 1 June 2026, Parkin charges 5% on Dubai public parking; before that it was treated as outside scope.
  • Public parking in other emirates may still be outside scope, so check the receipt.

You can't claim

  • Parking for commuting or for a car available for personal use is a personal benefit and blocked.

Worked examplesand why they land that way

  1. Recoverable

    Parkin charge during a client visit in July 2026

    Since 1 June 2026, Parkin charges 5% VAT on Dubai public parking. Parking for a client visit is a business cost, so the VAT is recoverable when the receipt shows it.

  2. Blocked

    Monthly parking at the office for an employee's own car

    Parking an employee's own car while they work is a personal benefit, so the VAT is blocked.

What to keepand what to watch

Documents you need

Parkin tax invoice or statement; private car park receipts with TRN.

Corporate tax

Deductible. Parking fines are not deductible.

GL account: Vehicle: parking and tolls

Common mistakes

Claiming VAT on pre-June 2026 Dubai public parking. Claiming VAT on commuting parking.

What changed recently

5% VAT on Parkin public parking from 1 Jun 2026.

Questions peopleask about this

When did Dubai public parking start charging VAT?

Parkin has charged 5% VAT on Dubai public parking since 1 June 2026. Before that it was treated as outside scope.

What about public parking in Abu Dhabi and Sharjah?

It may still be outside scope. Only claim VAT that's shown on a receipt with a TRN.

Is monthly parking at the office recoverable?

Not for an employee's own car, or a car available for personal use. That's a personal benefit, so the VAT is blocked.

Relatedexpenses

Rules thisanswer relies on