P Procurement of goods and services activities has a significant impact on tax revenues. every business entity participating in government tenders is required to comply with a number of legal provisions relating to taxation. in reality, providers of goods and services only fulfill administrative obligations as they are, without being accompanied by substantive compliance with applicable tax regulations, resulting in the loss of potential state revenue and declining confidence in the integrity of the procurement system. the method used is qualitative with a descriptive approach. the results of the study showed that there were still indications of non-compliance; namely, cva, cvc, and cve were several times late in reporting vat periodic tax returns. cv a and cv b have not reported the 2024 annual tax returns. cv b was several times late in reporting the pph periodic tax return for the provision of taxable services to the private sector. factors that influence include knowledge of taxes, personal awareness of obligations, business financial capabilities, attitudes towards taxes, internal administration systems, quality of service from the directorate general of taxes, sanctions and audit risks, technology and digitalization, social and professional environment, perceptions of the government, and applicable policies and regulations. efforts that can be implemented by the directorate general of taxes include conducting outreach and education to all business actors, utilizing technology and assistance, and conducting evaluations