Under the transaction fee program, dealers are required to remit $10 for every sale, lease, fleet or as is transaction on a per vehicle basis as a component of their registration renewal fee, with the exception of transactions with other registered dealers.
Examples of motor vehicles subject to the transaction fee include:
A vehicle that is not built for use on the road are exempted, including:
The transaction fee is $10 per vehicle.
New car dealers are required to remit the transaction fee for leases on behalf of the lessors with whom their manufacturers have arrangements (sometimes referred to as captive lessors). This applies regardless of whether the vehicle being leased by the dealer is a new or used car.
New car dealers may choose to pass the transaction fee on to consumers through their retail bill of sale.
Independent lessors are required to remit their transaction fee payments directly to OMVIC.
The following transactions are exempt:
If you sell a vehicle to someone who is not a registered dealer – whether by consignment or otherwise – a transaction fee is payable to OMVIC.
If you consign a vehicle to another registered dealer who then sells it to someone who is not a registered dealer (for example, a consumer), the dealer who sold the vehicle to the retail customer must remit the transaction fee. You do not need to remit a transaction fee on the consignment to another registered dealer.
While dealers must remit a $10 transaction fee per vehicle, passing the fee on to customers is optional, not mandatory.
OMVIC does not anticipate customers will refuse to pay the $10.
OMVIC does not issue invoices. Dealers are expected to self-report and remit payment with their renewal application. An officer, all partners or the sole proprietor of the dealer must sign the renewal form attesting to the accuracy of the remittance.
Yes, at the time of renewal you will make one payment that includes your renewal and transaction fees. The transaction fee is a component of the renewal fee.
Yes, the transaction fee can be passed on to customers by recording the fee on the bill of sale or lease. This fee cannot exceed $10 per vehicle. If you are referring to an OMVIC fee (verbally or in writing) you must also indicate the amount is $10.
For example, if you incorporate the OMVIC fee into an administration fee you currently charge and you refer to it on the bill of sale, you must indicate the OMVIC fee portion of the administration fee is only $10.
If you do list it on the bill of sale or lease, you will need to collect and remit both HST and GST directly to tax authorities. You do not need to remit the HST or GST to OMVIC.
OMVIC will be able to monitor the accuracy of remittances based on information provided by the Ministry of Transportation and through OMVIC inspections.
OMVIC recognizes that errors in reporting can happen and minor variations may be expected; however, if there is evidence of deliberate failure to report accurately, appropriate administrative action will be taken.