The revenue generated by the levy is used to fund consumer protection in the automotive industry. If you choose to pass the $6.25 levy on to your customers, you should clearly identify the purchase levy as a separate line item on all sales agreements.
What transactions are subject to the levy?
A business must remit the $6.25 levy to AMVIC for every vehicle sold or leased. This includes RVs and towable trailers with living accommodations.
Are all AMVIC-licensed businesses required to remit the levy?
Wholesale, agent and broker businesses are not required to collect or remit the levy.
Do I remit the levy if I sell a vehicle to another AMVIC-licensed business?
If the purchaser intends to use the vehicle as a fleet or rental unit, the seller must remit the levy for the sale. If the purchaser intends to resell the vehicle to an end-user, the seller is not required to remit the levy. The levy does not apply to wholesale transactions.
Can I pass the levy on to my customers?
Businesses can pass on the $6.25 levy to consumers but they should clearly disclose the levy as such on all sales agreements.
If a business chooses to pass on the levy to consumers, the levy must be included in the all-in price of an advertised vehicle.
Do I collect GST on the levy?
When you pass the levy on to the consumer you must collect and remit the GST directly to the Canada Revenue Agency.
Do I remit the levy on a recreational vehicle?
Businesses must remit the levy on the sale or lease of all vehicles, including recreational vehicles.
The levy applies to all vehicles regulated by the Automotive Business Regulation. Boats, boat trailers, all terrain vehicles and motorcycles are not included.
Do I remit the levy if the lessee buys out the vehicle at the end of the lease?
If the purchaser pays out the lease end value without a new finance contract you do not have to remit the levy since you have already paid the levy at the beginning of the lease.
If the purchaser returns the vehicle at the end of the lease and then enters into a new purchase agreement, the levy must be remitted on the transaction.
Do I remit the levy on a consignment sale?
Do I remit the levy on a fleet sale?
Does the levy apply to a national leasing company from outside Alberta?
If a leased vehicle will be registered and operated in Alberta, the leasing company must remit the levy to AMVIC.
Does the levy apply to out-of-province customers?
Regardless of whether the customer lives in the province or not, Alberta’s consumer protection laws apply to the automotive transaction and the levy must be remitted on the sale or lease.