Case Study: Racing Electronics automates tax compliance with MLveda and Avalara for Shopify Plus

Racing Electronics cuts tax errors to under 0.5% with MLveda

Racing Electronics, a leading provider of two-way radios and communication equipment, faced significant challenges managing sales tax compliance across its high-volume Shopify Plus storefront. With over 5,000 SKUs and sales in more than 20 U.S. nexus jurisdictions, their finance team was spending 10 hours weekly on manual tax lookups and exemption certificate management, leading to errors and compliance risks. To solve this, they partnered with vendor MLveda to integrate Avalara's Tax Compliance and CertCapture services.

MLveda implemented a comprehensive Avalara integration that automated tax calculations, SKU-to-tax-code mapping, and exemption certificate validation. The solution delivered immediate results, saving the finance team 10 hours per week and reducing tax classification errors by over 88% to below 0.5%. The integration also enabled 100% automated exemption handling and ensured tax rates were calculated in under 200 milliseconds, providing a scalable compliance framework for future growth.

Racing Electronics