Key differences Canadian self-publishers should know
Someone asked me this question the last time I presented my workshop, “Self-Publishing for First-Time Authors.” My first response was simple: it’s exactly the same.
A few minutes later, I had to change my answer. Self-publishing in Canada isn’t harder than in the US, but it is slightly different. This is to be expected, given the fact that most distribution platforms are American.
Here’s what Canadian self-publishers should know about online book distribution.
Printing/shipping costs
Though most online distribution platforms no longer charge setup fees, exchange rates still affect the cost of printing and purchasing printed books. Luckily, Amazon Kindle Direct Publishing (KDP) has been printing paperbacks at a facility in Bolton, Ontario, since 2019, significantly reducing shipping costs for Canadians for print-on-demand (POD) publishing.
While POD printing costs are similar between IngramSpark and KDP, shipping is not. Shipping a single paperback through IngramSpark can cost around $15 CAD, compared to roughly $5 CAD through KDP. The difference adds up quickly if you plan to order author copies.
Collecting royalties
Royalties work similarly in both countries: you provide banking information for direct deposit. Some platforms also offer PayPal payments (usually with a fee), and cheques (also with fees and minimum payout thresholds).
For example, Draft2Digital charges no fees and has no payment threshold for International (i.e., Canadian) direct deposits. However, they charge 2.5% fees (up to $25) for PayPal payments, compared to $1.50 in the States. Cheques cost $4 ($2.50 in the US) with a $100 payout threshold. Be sure to check how—and how often—you’ll be paid, along with any service fees involved.
Reporting Taxes
Taxes depend on the platform.
Because KDP prints and ships from Canada, it reports earnings directly to the Canada Revenue Agency (CRA). You’ll need to provide your Social Insurance Number (SIN) and mailing address to collect royalties.
American-based platforms like Ingram-Spark and Draft2Digital require a US Employer Identification Number (EIN). You can obtain one by contacting the Internal Revenue Service (IRS) and applying by completing a short phone interview.
During the process, you’ll declare your Canadian residency and claim benefits under the US-Canada Tax Treaty, which exempts you from paying 10% of your royalties in American taxes in addition to Canadian taxes.
Assigning ISBNs
ISBNs are managed differently in each country. In Canada, they’re free through Library and Archives Canada (LAC). After creating a free account, you can request a block of ISBNs and assign them as needed. You’ll also need to deposit your book with LAC to complete the registration (one book for the first 100 printed; two books for more). So while the ISBNs are free, there is a cost involved for purchasing an author copy, shipping it to your home to fill out the form for the deposit of publications, and then shipping it to LAC in Ottawa.
Key Takeaways
My revised answer? Self-publishing in Canada is the same as in the US, with a few more steps. Remember:
- Shop around to compare printing and shipping costs before ordering author copies.
- Choose platforms with strong online security, as you’ll be sharing some important personal and banking information.
- Expect to provide your SIN for Canadian-based sites.
- Apply for an EIN if using US platforms to avoid unnecessary tax withholding.
- Claim whatever royalties you earn from American distributors on your tax returns.
- Register with LAC for free ISBNs.
Most importantly, don’t take my word for it. Publishing platforms and policies are ever-changing, so do your research and double-check the details before jumping into the world of self-publishing.
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