Dear Licensees,
The VSA is proposing to establish a transaction fee like those levied in Alberta (Alberta Motor Vehicle Industry Council) and in Ontario (Ontario Motor Vehicle Industry Council), and by other public bodies in British Columbia. In recent years the VSA has been reviewing this option, and we have also received industry feedback about diversifying our revenue sources.
Give us your feedback
We would like to hear from you about establishing a transaction fee. Please send your feedback to: feedback@vsabc.ca by Thursday, May 1, 2025.
Please note, while all feedback will be carefully reviewed, any responses to feedback will be provided no sooner than July, 2025.
Frequently Asked Questions
Below you will find information on the proposed transaction fee.
Q: When will the transaction fee start?
A: We are currently looking to commence on April 1, 2026.
Q: How much will the fee be?
A: The Board of Directors is looking at a range between $9.00 and $12.50 and will make a final decision once consultations are complete. Alberta’s transaction fee is $10.00, and Ontario’s is $12.50.
Q: Can a dealer mark up the transaction fee?
A: The transaction fee would be fixed at a set amount and cannot be increased or marked up by the dealer under any circumstances.
Q: Is the fee applied to all transactions?
A: No. The fee is applied only to consumer transactions. This includes a consumer lease of a vehicle.
Q: How will I know it is a consumer transaction?
A: The VSA will establish a support webpage and educational materials to educate dealers on what a consumer transaction is. Generally, if the vehicle (which includes a trailer with temporary sleeping accommodations during travel) will be used primarily for personal, family, or household use, it is a consumer transaction.
Q: Can the fee be passed on to consumers? Is it taxable?
A: Yes, the transaction fee can be passed along to consumers, by recording the fee on the bill of sale or lease. The legislation will require you to itemize this fee on the bill of sale or lease agreement. The VSA will provide appropriate wording to use. The fee is taxable. You do not remit the tax to the VSA, but to the appropriate taxing authority. Alberta and Ontario report little concern from consumers in their provinces.
Q: Does the transaction fee apply to when I wholesale a vehicle, either a wholesale purchase or sale of a vehicle?
A: No. A wholesale purchase or sale is considered a business-to-business transaction.
Q: Do I remit a transaction fee on a consignment sale?
A: If the consignment sale is to a consumer, then you remit the transaction fee.
Q: How do I remit the transaction fee to the VSA?
A: The fee would be remitted in a similar way that you remit your dealer license renewal fee. We will provide more detailed information once the processes and systems have been established.
Q: How often will the fee need to be remitted?
A: The VSA Board of Directors is considering either quarterly or monthly remittances. A final decision will be made by the Board of Directors once consultations are complete.
Q: What about dealer management system changes?
A: We have spoken to CDK Global and Reynolds & Reynolds about changes to their dealer management systems. CDK Global noted dealers should already be able to add this fee in their systems. Reynolds & Reynolds asked for about 5 weeks’ notice for adding a transaction fee to their system. Both said there is no cost for changes to the standard bill of sale.
Q: If a consumer asks, what do I tell consumers about the transaction fee?
A: The VSA plans on developing point of sale material in multiple languages that explains the transaction fee, and the material will include a QR code. The QR code will lead to a dedicated VSA webpage with multiple language options and where the VSA will explain the transaction fee and what we use the revenue for.
Q: What will the revenue from the transaction fee be used for?
A: It will be used to implement various consumer and industry programs to deliver on the VSA mandate. It will also help offset some regular costs, which continue to rise, as well as meet growing demands on VSA services, rapidly increasing IT costs (e.g., cyber security and AI adoption), and meet new government initiatives and priorities such as the Accessible British Columbia Act.
Q: What happens to license fees?
A: License fees will remain in place. If the transaction fee is put into place on April 1, 2026, there will be no license fee increases in that year. Annually, the VSA Board of Directors will assess the resources needed to meet our government mandate and any need for fee increases.
