Case Study: Component Distributors achieves accurate multi-state sales tax compliance and a clean audit with Avalara AvaTax

Component Distributors - Customer Case Study

Component Distributors, a Denver-based global distributor of board‑level electronic components, faced a complex sales‑tax compliance problem: they have nexus in 16–17 states with myriad local, county and state rates, and their ERP couldn’t reliably determine the correct taxes—exposing them to audit risk, including a recent California sales‑tax audit with a three‑year look‑back.

They integrated Avalara AvaTax with their ERP to automate tax calculation and reporting. The automatic, electronic connection delivered accurate tax rates, they passed the California audit with no incorrectly taxed orders, and the company reclaimed internal resources by relying on a third‑party tax expert.

Component Distributors

Dan Miller

CFO, Component Distributors