The modernization of tax administration through the implementation of e-Faktur and Coretax requires Taxable Entrepreneurs to improve compliance in the calculation, payment, and reporting of Value Added Tax (VAT). This study aims to analyze the implementation of tax administration modernization related to VAT at PT API Precision during 2023–2025, its compliance with tax regulations, and the challenges encountered. This research employed a qualitative descriptive method, with data collected through interviews, observations, documentation, and literature review. Data analysis was conducted using the Miles and Huberman model, consisting of data reduction, data presentation, and conclusion drawing. The results indicate that the implementation of tax administration modernization at PT API Precision has been carried out effectively and is in accordance with Law Number 42 of 2009, Law Number 7 of 2021, and Minister of Finance Regulation Number 131 of 2024. The challenges encountered include adjustments to the Coretax system, delays in receiving tax invoices, and errors in data entry. However, these challenges can be addressed through evaluation, coordination, internal supervision, and improvements in human resource competencies, thereby supporting the company's tax compliance. Keywords Tax Administration Modernization, Value Added Tax, Coretax, e-Faktur