A member called us recently, confused as to whether they needed to remit on renewal to OMVIC, the $22 transaction tax (the new rate as of Sept. 1, 2025) for leases to out of province consumers.

The answer is yes.

We thought a refresher on all things transaction tax related might be in order.

Members are reminded that the transaction tax only applies to non-dealer transactions within or outside of Ontario. Sales or leases to dealers and out-of-province dealers are exempt.

Other exceptions to the transaction fee include:

• Selling a vehicle to a bona fide lessee during or at the end of their lease term (note: the transaction fee is applicable at the inception of the lease). Also, if a lessee chooses to re-lease the same vehicle as a way of financing the lease buy out, this second lease would not be subject to the transaction tax.
• Transactions involving buses or commercial vehicles as defined by the Highway Traffic Act unless the customer is an individual obtaining it for personal or family use.

As of January 6, 2025, dealers are required to upload a “Transaction Fee Register”, upon renewal of their registration, which details all transactions subject to the transaction tax.

While the completed Transaction Fee Register must be uploaded to OMVIC’s website upon renewal, OMVIC recommends that dealerships keep track of transaction fee applicable transactions on a daily, and at the minimum monthly, basis. This is so that dealers can ensure that they have adequate records in the event that they are subject to an OMVIC inspection in between renewal periods.

Any dealers renewing their licence on or after January 6, 2025 will need to complete the Transaction Fee Register to reflect all transactions subject to the transaction tax conducted during the renewal period.

If you are renewing your licence on or after January 6, 2025 you must fill out the Transaction Fee Register to account for all transactions, subject to the transaction tax, that you have conducted since your last renewal—not just those completed on or after January 6, 2025.

The UCDA worked with DMS providers to allow for members to be able to download a pre-filled version of this form, with all the applicable reported transactions, straight from their DMS. An excel version of the Transaction Fee Register can be accessed HERE

Dealers are free to use their own excel/CSV document to track transactions, so long as this document contains all the same required fields as the Transaction Fee Register.

Members can access a step-by-step guide on how to navigate the Transaction Fee Register changes by following this link HERE