Demystifying ISBNs
For Canadian Authors
The last time I presented my workshop, “Self-Publishing for First-Time Authors,” someone asked if it was easier to self-publish in the US or Canada. My first response was that it is exactly the same.
A few minutes later, I had to change my answer. Publishing in Canada is not harder than it is in the US, but it is slightly different. This is to be expected when you consider that we have to use American platforms for online distribution.
This post explores the differences Canadian self-publishers should be aware of when it comes to online book distribution.
Printing/shipping costs
Though most online distribution platforms no longer charge a setup fee, the exchange rate still affects the cost of purchasing a printed book. Luckily, Amazon Kindle Direct Publishing (KDP) has been printing paperbacks in a facility in Bolton, Ontario, since 2019. This means that the cost of purchasing a book—and shipping, in particular—is far less than buying a paperback from a print-on-demand (POD) outlet in the States. For example, while the cost of printing a POD paperback with Ingram-Spark is comparable to one with KDP, the shipping costs differ. Expect to pay around three times as much for shipping from Ingram-Spark (~$15 CAD to ship one paperback) than from KDP (~$5 CAD).
Collecting royalties
I suspect the way distribution platforms pay royalties is the same in both countries: the publisher must provide banking information for direct deposit. Some sites support PayPal payments, but there is often a fee. They might offer to issue cheques, but they charge a service fee. There is usually a payment threshold, meaning that cheques are not cut until you have earned a minimum amount of royalties.
For example, Draft2Digital charges no fees and has no payment threshold for International (i.e., Canadian) direct deposits. However, they charge 2.5% fees for depositing to PayPal, with a $25 maximum ($1.50 in the States). They also charge a flat fee of $4 ($2.50 in the US) to issue a cheque with a $100 payment threshold. Be sure to investigate how the platforms you select pay, how often, and any service fees involved.
Reporting Taxes
How Canadian self-publishers pay taxes depends on the distribution platform they use.
Because KDP prints and ships from Canada, they report your earnings directly to the Canada Revenue Agency (CRA). You will have to enter your Social Insurance Number (SIN) and mailing address to collect royalties.
American sites, like Ingram-Spark and Draft2Digital, require an American Employer Identification Number (EIN) to get paid. This means that you will have to contact the US Internal Revenue Service (IRS) to apply for one. To do this, call the IRS. An operator will conduct a phone interview, and at the end of the call, you will have an EIN.
During the process, you will declare that you are a Canadian citizen and that the US-Canada Tax Treaty applies to your earnings. This exempts you from paying 10% of your royalties in American taxes.
Assigning ISBNs
ISBNs are managed by different governing bodies in each country. In Canada, they are assigned by the Library and Archives Canada (LAC). ISBNs are free to assign in Canada, though they do require you to deposit your books in their database to register the ISBNs fully. Head over to the LAC ISBN site to create an account. When you are done, click to manage your logbook and request a block of ISBNS. Assign these ISBNs to your titles as needed.
Key Takeaways
My revised answer? Self-publishing in Canada is the same as in the US, only with a few more steps. Remember:
Shop around to find the best price for printing and shipping when ordering books to sell in person.
You are going to have to trust your distribution platform with some important personal and banking information. Pick platforms with proven track records when it comes to online security.
Be prepared to enter your SIN in sites that print and ship from Canada.
Apply for an EIN to avoid paying US taxes on earnings from American distribution platforms. Be sure to claim whatever royalties you earn on your tax returns.
Register as a Canadian author or publisher with the LAC for free ISBNs.
Most importantly, don’t take my word for it. The publishing world is ever-changing, and so are many of the rules and procedures surrounding online distribution networks. Be sure to do your research before you jump into the world of being a self-published author.