Dear Licensees,
In response to industry feedback, the Vehicle Sales Authority of BC (VSA) will be issuing monthly bulletins dedicated to educating on the upcoming fixedย $10 Transaction Levy.ย The levy, which will be implemented April 1, 2026, will apply to each consumer transaction involving a motor vehicle, as defined under theย Motor Dealer Act.
In the coming months, we will share additional pertinent details regarding the levy.
Specific Line Item: “VSA Levy Recovery”
Effective April 1, 2026, dealers who choose to pass the fixed $10 Transaction Levy to consumers must itemize the recovery of this levy on the bill of sale or lease agreement, in accordance with BCย legislativeย 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.
This reminder is intended to help you prepare your contracts and processes ahead of implementation. Please review your purchase agreement templates to ensure this line item is included for all applicable transactions starting April 1, 2026.
The VSA has consulted with:
Dealers who use a dealer management system not listed above should reach out to their provider directly.
Note: This bulletin is intended to convey general information. It does not constitute legal advice and must not be treated or relied on as such. If you require legal advice with respect to the content of this bulletin, we encourage you to speak with a lawyer.
Questions
If you have any questions about the Transaction Levy, please reach out to the VSAโs Licensing department:
Email: Licensing@vsabc.ca
Phone: 604-575-7256
Toll-free: 1-877-400-3529
What the Transaction Levy Revenue Will Be Used For
Sept. 3, 2025 | Clarifying What the Transaction Levy Applies To | Click Here
