Starting April 1, 2026, every consumer vehicle purchase or lease from a licensed BC motor dealer will include a $10 Transaction Levy.
This small levy helps the Vehicle Sales Authority of British Columbia (VSA) continue to protect consumers, educate the industry, and improve services for everyone buying or leasing a personal-use vehicle in BC.
The Transaction Levy is a fixed $10 charge per consumer transaction. It helps fund the Vehicle Sales Authority of BCโs (VSA) consumer protection and industry programs, technology and cybersecurity investments, and other public-interest initiatives. The levy is similar to programs operated by the Alberta Motor Vehicle Industry Council (AMVIC) and the Ontario Motor Vehicle Industry Council (OMVIC).
Dealers will be required to remit the levy quarterlyย to the VSA, based on the number of consumer transactions completed in the previous quarter.
Levy timeframe | Levy payment due date |
April 1 โ June 30 | July 31 |
July 1 โ September 30 | October 31 |
October 1 โ December 31 | January 31 (following year) |
January 1 โ March 31 | April 30 |
Important: Dealers must maintain accurate transaction records. Details on the submission process and any required reporting forms will be provided by the VSA prior to implementation.
For a detailed SOP, please Click Here.
Dealers may pass the $10 Transaction Levy on to consumers, but:
The VSA will provide sample wording and point-of-sale materials in multiple languages to help you explain the levy to consumers.
The Transaction Levy applies only to consumer transactions involving a motor vehicle as defined under the Motor Dealer Act:
โA self-propelled vehicle designed or used primarily for travel on a highway as defined in the Transportation Act, and includes a trailer designed or used primarily for accommodation during travel or recreationโฆโ
Includes
Does Not Include
Yes. The levy can be passed along as an itemized charge on the bill of sale or lease. Applicable taxes also apply.
The levy is a fixed $10 per consumer transaction.
No. The amount is fixed by the VSA and cannot be increased or changed by dealers.
Yes. Applicable taxes (e.g., GST/PST) apply to the $10 levy. Taxes are remitted to the proper tax authority, not to the VSA.
No. The levy only applies to consumer transactions. Business-to-business (wholesale) or fleet sales are excluded.
If the final sale is to a consumer, the levy applies.
Quarterly, in line with the schedule listed above.
The VSA has communicated with CDK Global, Reynolds & Reynolds, LightSpeed and Michael Mason regarding the levy. Dealers should contact their own dealer management service provider.
No. There will be no licence fee increases in the 2026/27 fiscal year as the levy is implemented.
Dealers who choose to pass the levy to consumers must itemize the recovery of this levy on the bill of sale or lease agreement, in accordance with BC legislative requirements. This levy is taxable as it forms part of the vehicleโs purchase price. The required line item must read: โVSA Levy Recoveryโ on all consumer purchase agreements for motor vehicles.
The transaction levy will not be refunded in the event the sale is reversed.
Dealers who choose to pass the levy to consumers must advertise it as part of the total price of the vehicle in accordance with BC legislative requirements.
If the dealer is making the transaction levy a mandatory fee, then yes, the levy must be included in the vehicle price when calculating and advertising the APR on vehicle financing.
If the dealer is making the transaction levy a mandatory fee, then yes, the levy must be included when calculating and advertising the vehicle price for the purpose of the provincial and federal luxury tax
Yes, the transaction levy does not apply to wholesale transactions, as these are considered business-to-business transactions. However, if a consignment sale is made to a consumer, the levy must be
remitted.
Transaction Levy Info Sheet
Click below to access the Transaction Levy Info Sheet and find answers to key questions about the levy.
Salesperson & Wholesaler License Renewal
To remain in compliance with the Motor Dealer Act and Regulations, you must apply for renewal no later than 14 days before your license expiry date.
VSA Bulletins & Alerts
Stay current on industry updates, regulatory changes, and VSA communications.
Step-By-Step Remittance Guide
Refer to the guide below for detailed instructions on remitting the transaction levy at the end of the quarter.
Policies & Guidelines
Access key legislation, policies, and guidance documents related to dealer operations, privacy, and consumer protection.
Downloadable Point-Of-Sale Material
Coming Soon โ The VSA will provide point-of-sale materials for dealers to share with consumers about the VSA and the transaction levy. Additional versions will be available for download here.
Have questions about the Transaction Levy or other licensing matters?
Email: Licensing@vsabc.ca
Phone: 604-575-7256 Toll-free: 1-877-400-3529
