As a SHEIN shopper, you may notice an extra charge on your orders called “sales tax.” This guide breaks down what sales tax is, why it’s added to some orders, which states require it, and how sales tax on shein refunds work. Our goal is to help you understand why this charge may appear on your SHEIN order and how it impacts your total cost.
What is Sales Tax?
Sales tax is a fee that state and local governments place on goods and services. It’s added to the cost of your purchase based on where you live. Some states require retailers, like SHEIN, to collect sales tax from customers and pass it on to the state.
When you shop on SHEIN, you might see sales tax on your order total if it’s required by your state or locality. This tax helps fund public services, schools, roads, and other community resources in your area. For a more detailed look at how sales tax on shein works in general, check out this article on sales tax.
Why Does SHEIN Charge Sales Tax?
SHEIN charges sales tax on orders if your state requires it. Each U.S. state has its own rules on sales tax. Some states also apply tax to shipping fees, while others only tax the items you buy. If your location requires sales tax, SHEIN calculates it and adds it to your order at checkout.
States Where SHEIN Collects Sales Tax
As of now, SHEIN collects sales tax in the following U.S. states:
Alabama, Arizona, Arkansas, California, Colorado, Connecticut, District of Columbia, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Michigan, Mississippi, Nebraska, Nevada, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, Wyoming, Kansas, New York, and Florida.
If you live in one of these states, your order will include sales tax, and you’ll see this amount in the “Order Summary” before you complete your purchase.
Why Does My Final Price Seem Higher?
If you’ve ever noticed that the amount you actually paid for an item appears higher than the original sales price, sales tax could be the reason. Let’s explain why this happens.
When you check out on SHEIN, the system adds up the total sales tax for your entire order. Then, after you make the payment, SHEIN’s system distributes the tax across each item in your order. This division means that each item’s final price includes a portion of the total tax amount. The end result might make individual item prices look higher, even though the total amount remains the same.
Here’s an example to clarify: Imagine you bought three items, and your state charges a 5% sales tax. The total tax amount will be split evenly across the three items, making each one look slightly more expensive. However, the full cost at checkout doesn’t change.
This breakdown helps SHEIN calculate and distribute the tax fairly, ensuring each item reflects its share of the tax.
Can I Get a Sales Tax Refund?
Yes, sales tax is refundable in certain cases. If you cancel an item, a full order, or if you return items, SHEIN will refund the tax associated with those items. Here are the situations when you can expect a sales tax refund:
- Order or Item Cancellation: If you cancel your entire order or specific items before they ship, SHEIN will refund the tax that was applied to those items.
- Returned Items: When you return items to SHEIN for a refund, SHEIN will also refund the tax associated with those items.
SHEIN processes tax refunds along with your item refund. This means if you return an item, the sales tax for that item will also be refunded. If you cancel an order or an item, you’ll see the tax refunded back to your original payment method.
How Does the Sales Tax Refund Work?
When you receive a full refund for an item or order, you also receive the full amount of tax paid on that item or order. If you receive a partial refund on an item, you’ll receive the tax based on the actual amount refunded.
For example, if an item costs $20, and your state charges a 5% sales tax, the total tax for that item is $1. If you receive a full refund, the full $1 tax will return to your payment method. If only part of the $20 item is refunded, the refunded tax amount will match the refund portion.
Does Sales Tax Apply to Shipping?
In some locations, sales tax applies not only to the items you buy but also to shipping costs. Whether or not sales tax applies to shipping fees depends on your state’s rules.
If your state applies tax to shipping fees, you’ll see this tax included in the total sales tax at checkout. SHEIN’s checkout system calculates and displays the final sales tax based on the requirements of your state or locality. This way, you can view the total amount of tax added to both the items and shipping before you pay.
Why is Sales Tax Divided Among Items?
SHEIN allocates sales tax across individual items to ensure accurate reporting and refund processing. Each item you buy contributes to the overall tax amount based on its price. After checkout, the system divides the total tax into amounts that apply to each item.
This split makes it easy to process refunds if you decide to cancel or return an item. By dividing the tax across items, SHEIN ensures the correct tax amount is applied to each part of your order.
Key Takeaways for SHEIN Shoppers
Here’s a quick summary of sales tax for SHEIN orders:
- Sales tax is a government-imposed charge on goods, sometimes including shipping fees, based on state and local laws.
- Each state has different rules, and SHEIN collects sales tax where required.
- Your final price may look higher because sales tax is divided across items, but the total amount remains as shown at checkout.
- Refunds on sales tax happen when you cancel or return items, with tax refunded based on the amount you paid.
By understanding these details, you can make informed decisions when shopping on SHEIN. Sales tax is a standard part of online shopping in many states, and SHEIN applies it following state requirements.
If you have questions about your order, sales tax, or refunds, reach out to SHEIN’s customer support team for assistance. They’re available to clarify any additional details and provide help where needed.
Happy shopping!