Dear Licensees,
Effective April 1, 2026, the Vehicle Sales Authority of BC (VSA) will implement a fixed $10 Transaction Levy for each consumer transaction involving a motor vehicle, as defined under the Motor Dealer Act.
This bulletin provides important clarification on what the levy applies to, what it does not, and how the funds will be used.
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.
What the Transaction Levy Applies To
The Transaction Levy applies only to consumer transactions involving a โmotor vehicleโ as defined in the Motor Dealer Act. For clarity, the definition of โmotor vehicleโ is:
โA self-propelled vehicle designed or used primarily for travel on a highway as defined in the Transportation Act, and includes a trailer, as defined in the Motor Vehicle Act, designed or used primarily for accommodation during travel or recreation, but does not include:
This means the Transaction Levy does not apply to the sale of off-road motorcycles, ATVs, side-by-sides, lawnmowers, or other unregulated vehicles.
What the Transaction Levy Revenue Will Be Used For
Revenue from the VSA’s Transaction Levy will support the VSA’s mandate in four key areas:
Transaction Levy Webpage
The VSA is developing a webpage to explain the transaction levy in greater detail, including how the funds will be used. Once finalized, it will be shared with the industry and made available for consumers to help them better understand the levy.
Terminology Update
Please note that moving forward, this charge will be referred to as the Transaction Levy, not the Transaction Fee.
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
