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Compliance & Licensing

Operating a used car dealership in Alberta — the complete guide

Alberta's automotive dealer regulations are administered by AMVIC. This guide covers the key compliance requirements, tax obligations, and operational best practices for Alberta used car dealers.

Key takeaways

  • AMVIC license number must be displayed at your business and in all advertising
  • Only 5% GST applies in Alberta — no provincial sales tax on vehicles
  • Written disclosure of known defects is required before every sale
  • AMVIC conducts unannounced inspections — maintain compliant records always

AMVIC licensing and compliance

All automotive businesses in Alberta must be licensed by AMVIC. Your AMVIC license number must be displayed at your place of business and included in your advertising.

AMVIC conducts both scheduled and unannounced inspections of licensed businesses. Maintain current records at all times — not just when you expect an inspection.

GST on vehicle sales in Alberta

Alberta has no provincial sales tax — only the 5% federal GST applies to vehicle sales at dealerships. Collect and remit GST on all taxable sales. Register with the CRA for a GST account before making your first sale.

This makes Alberta one of the most tax-friendly provinces for vehicle purchases — a selling point you can highlight on your website and marketing.

Consumer protection requirements

Alberta's Tourism Levy Act and the Traffic Safety Act impose additional obligations on vehicle dealers. Written disclosures are required for all vehicle sales — ensure every customer receives a written disclosure of any known defects or history issues before purchase.

Vehicle inspections and safety certification requirements in Alberta affect how vehicles are sold. Understand the current rules for selling vehicles with and without safety certification in your area.

Frequently asked questions

Is there a warranty requirement for used vehicles in Alberta?

Alberta's Consumer Protection Act provides buyers with implied warranty rights for vehicles sold by dealers. Consult an automotive lawyer or the AMVIC resources for current warranty disclosure requirements.

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