Dear Licensees,
The VSA Board of Directors has approved a fixed $10 transaction fee beginning on April 1, 2026. We would like to thank all industry members for providing valuable feedback during our consultation period.
This transaction fee, which begins in the 2026/27 Fiscal Year, is similar to those levied by the Alberta Motor Vehicle Industry Council, Ontario Motor Vehicle Industry Council, and by other public bodies in British Columbia. More information will be shared in the coming months to help prepare dealers for this implementation.
If you have any questions about the transaction fee (that are not answered in the FAQ below), please reach out to the VSAโs Licensing department:
Please refer to the below FAQ for additional information on the VSA transaction fee.
Q: When will the transaction fee start?
A: The transaction fee will commence on April 1, 2026.
Q: How much will the fee be?
A: The Board of Directors has approved a $10 fee.
Q: Can a dealer mark up the transaction fee?
A: The transaction fee will be fixed at $10, 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 is in the process of establishing 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 will 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 has approved a quarterly remittance for the transaction fee.
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 weeksโ 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. There will be no licensing fee increases in the 2026/27 Fiscal Year. Annually, the VSA Board of Directors will assess the resources needed to meet our government mandate and any need for fee increases.
