Dear Licensees,
The VSA Board of Directors has approved aย fixed $10 transaction levy beginning on April 1, 2026. We would like to thank all industry members for providing valuable feedback during our consultation period.
This transaction levy, which begins in the 2026/27 Fiscal Year, is similar to those levied by theย Alberta Motor Vehicle Industry Council,ย 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 levy (that are not answered in the FAQ below), please reach out to theย VSAโs Licensing department:
Please refer to the below FAQ for additional information on the VSA transaction levy.
Q: When will the transaction levy start?
A: The transaction levy will commence on April 1, 2026.
Q: How much will the levy be?
A: The Board of Directors has approved a $10 fee.
Q: Can a dealer mark up the transaction levy?
A: The transaction levy will be fixed at $10, and cannot be increased or marked up by the dealer under any circumstances.
Q: Is the levy applied to all transactions?
A: No. The levy 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 levy be passed on to consumers? Is it taxable?
A: Yes, the transaction levy 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 levy 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 levy 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 levy on a consignment sale?
A: If the consignment sale is to a consumer, then you remit the transaction levy.
Q: How do I remit the transaction levy to the VSA?
A: The levy 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 levy need to be remitted?
A: The VSA Board of Directors has approved a quarterly remittance for the transaction levy.
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 levy in their systems. Reynolds & Reynolds asked for about 5 weeksโ notice for adding a transaction levy 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 levy?
A: The VSA plans on developing point of sale material in multiple languages that explains the transaction levy, 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 levy and what we use the revenue for.
Q: What will the revenue from the transaction levy 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.
