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This study aims to analyze the effect of understanding taxpayer awareness of taxpayers and tax sanctions on MSME taxpayer compliance who conduct online business activities in the city of Metro. This type of research is quantitative research. Quantitative research is a research method based on the philosophy of positivism which is based on numbers with statistical management. Sources of data in this study are primary data and secondary data by obtaining data from the results of the questionnaire. The questionnaire was given to a sample of 97 MSME taxpayers in the city of Metro who conduct online business activities through the Website, Twitter, Facebook, Instagram, Tokopedia or other platforms. Based on research results Understanding Taxpayers have a significant effect on compliance of MSME taxpayers in KPP Pratama Metro. Tax Awareness affects the compliance of MSME taxpayers in KPP Pratama Metro. Awareness of taxpayers understands the taxpayers tax system used, knows the function of taxes as a source of state revenue used for state financing, and understands taxation regulations regarding filing tax returns and paying tax obligations. So that the higher awareness of taxpayers will increasingly increase tax compliance of SMEs. Tax sanctions do not affect the compliance of MSME taxpayers in KPP Pratama Metro. So the Tax Sanctions set by the Government have not gone well, so that the tax sanctions do not affect the compliance of tax payers of MSME.