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Hipstamp And The American Philatelic Society Announce Strategic Partnership

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Posted 08/24/2022   10:43 am  Show Profile Check revenuecollector's eBay Listings Bookmark this reply Add revenuecollector to your friends list  Get a Link to this Reply
It will be interesting to see if these current features of the existing APS store carry through to the Hipstamp implementation:

1. The ability to select APEX expertization for individual items from within the cart as part of checkout.

2. The ability to pay partially or fully for a transaction from your account balance on file with the APS (funds from selling stamps through the APS).

Or are these features falling by the wayside?
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Edited by revenuecollector - 08/24/2022 10:44 am
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Posted 08/24/2022   9:56 pm  Show Profile Bookmark this reply Add rogdcam to your friends list  Get a Link to this Reply

Quote:
I do have a mechanics/logistics question: if everything now routes through Hipstamp's ecommerce platform, ignoring their flouting of law with respect to sales tax collection for the moment, does this mean that individual sellers could now receive a federal Form 1099-K from PayPal for APS sales through Hipstamp, or is the APS the transactional seller of record and it's business as usual with respect to IRS reporting?


Here is Hip's explanation regarding not collecting sales tax:


Quote:
While Hip is a marketplace, we are not directly involved in any transactions, and all payment is made directly from each buyer to each seller. As a result, as we have no ability to collect payment from any buyers, and we do not collect sales tax automatically.


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Posted 08/24/2022   10:19 pm  Show Profile Check revenuecollector's eBay Listings Bookmark this reply Add revenuecollector to your friends list  Get a Link to this Reply
I don't buy it.They are still the marketplace of record, so the legal responsibility is still theirs, not that of the payment processor (PayPal).
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Posted 08/24/2022   11:23 pm  Show Profile Check jamesg's eBay Listings Bookmark this reply Add jamesg to your friends list  Get a Link to this Reply
Why is there sales tax on old stamps, when there is none charged by the post office when new? ? ?
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Posted 08/25/2022   12:13 am  Show Profile Bookmark this reply Add rogdcam to your friends list  Get a Link to this Reply
USPS is tax exempt by law.
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Posted 08/25/2022   04:11 am  Show Profile Check johnsim03's eBay Listings Bookmark this reply Add johnsim03 to your friends list  Get a Link to this Reply

Quote:
I don't buy it.They are still the marketplace of record, so the legal responsibility is still theirs, not that of the payment processor (PayPal).


Indeed - perhaps someone is in for a nasty surprise down the road in this regard?! Could be, the platform is not sophisticated enough to collect and remit sales tax automatically (as is eBay). It is an interesting point for discussion.

John
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Posted 08/26/2022   01:30 am  Show Profile Bookmark this reply Add Parcelpostguy to your friends list  Get a Link to this Reply
The real reason I infer that Hip is not being squeezed to collect sales tax by various US state agencies is that unlike eBay, Hip's gross sales is insignificant to eBay's volume.


Quote:
It will be interesting to see if these current features of the existing APS store carry through to the Hipstamp implementation:


Now one point of discussion at the APS GASS was the show catalog or directory. In the dealer' section for those dealers present several icons were included in the name/description. One was the willingness to work with beginners. The other was an asterisk denoting APS member dealers. HIP appears at the show and in the show directory but does not have the asterisk denoting an APS approved dealer member. Why would the APS choose to partner with a 'dealer' who is not an APS approved dealer? [Now from the comments on the various SCF threads the complaints of the less than positive experiences seem to go against the expectation of an approved APS member dealer.] What is this about? Does the APS code of ethics now not carry through to HIP transactions?
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Edited by Parcelpostguy - 08/26/2022 01:33 am
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Posted 08/26/2022   06:18 am  Show Profile Bookmark this reply Add angore to your friends list  Get a Link to this Reply
A while back on another forum, I had mentioned improvements in StampStore and one person chided me that APS was a non-profit had to be careful to not jeopardize its non-profit status. The person never articulated what line had to be crossed.
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Al
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Posted 08/26/2022   07:38 am  Show Profile Check revenuecollector's eBay Listings Bookmark this reply Add revenuecollector to your friends list  Get a Link to this Reply

Quote:
The real reason I infer that Hip is not being squeezed to collect sales tax by various US state agencies is that unlike eBay, Hip's gross sales is insignificant to eBay's volume.


Hipstamp may indeed fall below the calendar-year gross sales threshold (note that it's sales, not state sales tax collected), most of which are $100,000, but given some of the sales puffery that has gone on, I would question whether Hipstamp may have crossed that threshold in certain states with high-population centers, e.g., New York, California, Illinois, etc.

The bigger problem for Hipstamp is that similar to the Federal 1099-K reporting threshold, certain states have adopted an annual number-of-transactions-into-the-state prong to the test, and unlike the Federal test, it's an *OR* test, not an *AND* test. So for example, instead of having to meet BOTH $100,000 in sales to the state AND 200 transactions, if your marketplace handles $100,000 in sales to the state OR 200 transactions (regardless of aggregate dollar amount), the collection requirement is triggered.

https://www.avalara.com/us/en/learn...or-laws.html

Examples:

Alaska: $100,000 in prior calendar year OR 200 transactions
Arkansas: $100,000 in prior calendar year OR 200 transactions
Illinois: $100,000 OR 200 transactions (I can all but guarantee that Hipstamp has triggered this collection requirement)
Indiana: $100,000 OR 200 transactions

I did not drill down into the actual legislation in each state to read fine print, caveats, etc.; this is based on the above-linked reference.
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Edited by revenuecollector - 08/26/2022 07:39 am
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Posted 08/26/2022   08:19 am  Show Profile Bookmark this reply Add rogdcam to your friends list  Get a Link to this Reply
After spending hours of my life that I can never get back researching the tax issue I have to conclude that Hipstamp is without a doubt a marketplace facilitator whether they process payments or not. Hip's argument just seems very weak to say the least.

IMO the question is not will the hammer drop but rather when will the hammer drop when it comes to the tax issue and what will be the stance of the taxing authorities on past sales reporting that did not take place.
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Posted 08/26/2022   12:14 pm  Show Profile Bookmark this reply Add cjpalermo1964 to your friends list  Get a Link to this Reply

Quote:
one person chided me that APS was a non-profit had to be careful to not jeopardize its non-profit status

They were uninformed. Nonprofits can have massive sales and income from a variety of sources and can even retain large amounts of unspent income with no impact on status. The real question is how the retained income is used. If the primary use is to benefit officers, directors, or shareholders and not the educational mission of the organization, then you have a problem.
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Posted 08/27/2022   10:39 am  Show Profile Bookmark this reply Add Parcelpostguy to your friends list  Get a Link to this Reply
As the news spread at GASS there was/is some grumbling by APS member dealers, especially the longer term ones, who find it disheartening that the APS would partner with a 'dealer' who is not an approved APS member dealer. General comments ran along the line of 'it must be about the money.'
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Posted 08/27/2022   12:48 pm  Show Profile Bookmark this reply Add angore to your friends list  Get a Link to this Reply
I think it is all about money. The cost to run internally vs externally and a need for more revenue to supplement declining memberships.
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Al
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Posted 08/28/2022   01:29 am  Show Profile Bookmark this reply Add DJCMHOH to your friends list  Get a Link to this Reply
So APS opens a shop on HipStamp. Probably a good thing in that it does give the APS potential exposure to consumers who are not currently members of the APS.

But why stop there, Delcampe is a much bigger philatelic market than Hipstamp is - if APS wants to get its store viewed by more people (and in particular a larger GLOBAL audience) it would make sense to open a storefront on Delcampe as well as HipStamp

Just my thoughts as someone who uses Delcampe much much more often than Hipstamp

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Posted 09/13/2022   11:07 pm  Show Profile Bookmark this reply Add Parcelpostguy to your friends list  Get a Link to this Reply
Any progress or news about the joint venture? GASS is over, folks are back to there home geographic area thus perhaps some progress is being made.
Of course if Covid hit any staff at GASS, then that will certainly slow things.

At least a tentative timeline of the merging activities should be available now, if not soon, I would think.
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