AMVIC levy explained
Every business that sells or leases a vehicle or recreational vehicle to an end user is required to remit a $6.25 levy per vehicle sold or leased to AMVIC. AMVIC receives its authority to collect a levy from Section 136 (8) of the Consumer Protection Act:
“A regulatory board may, with the approval of the Minister, collect money by the levy of assessments on licensees and designated agents as defined in section 102 for the purpose of enabling the board to carry out the powers, duties and functions delegated to it.”
Revenue generated from the levy is used to fund the Compensation Fund, as well as support AMVIC’s activities as a regulatory public agency with a mandate in providing consumer protection within Alberta’s automotive industry. The mandate requires AMVIC to:
- Act in any capacity pursuant to the Consumer Protection Act and related regulations.
- Enhance consumer protection and confidence in Alberta’s motor vehicle industry.
- Promote education and licensing for industry players (businesses and salespeople).
- Establish and collect assessment fees.
If a business chooses to pass the $6.25 levy on to a customer, the business must clearly identify the purchase levy as a separate line item on all sales agreements (ABR, Section 31.2(1)(j)(v)). 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.
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.
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.
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.
How a business remits the levy
Levy payments are due quarterly and payments up to $5,000 can be remitted through your AMVIC Online account. Payments exceeding $5,000 can be paid by cheque, debit or credit in person at AMVIC’s Edmonton office. Cash is not accepted.
Business will not receive an invoice for the levy but are instead required to self-report their sales volume. AMVIC has a step-by-step process on how to report (configure) and remit levies.
Levy collection and due dates:
|Quarter||Levy timeframe||Levy payment due date|
|1||Jan. 1 – March 31||April 30|
|2||April 1 – June 30||July 31|
|3||July 1 – Sept. 30||Oct. 31|
|4||Oct. 1 – Dec. 31||Jan. 31 (the following year)|