The Lagos State Internal Revenue Service (LIRS) has rolled out an upgraded process for the collection of Hotel Occupancy and Restaurants Consumption Tax (HORCT) in Lagos State. The Executive Chairman, Ayodele Subair, announced the immediate deployment of the Eco Fiscal System (EFS), an automated invoicing solution designed to transform the collection of consumption taxes in the state.
In a public notice addressed to members of the public, as well as operators and owners of hotels, event centers, restaurants, bars, and related facilities in Lagos State, Subair emphasized that the EFS is a technological advancement aimed at enhancing convenience in tax payment and ensuring compliance with tax laws.
The traditional manual process of HORCT collection often led to errors, penalties, and increased costs for operators. However, with the introduction of the EFS, businesses in the hospitality sector can now automate and digitize their invoicing and collection processes.
The EFS offers real-time online consumption tax billing, collection monitoring, and instant issuance of receipts with a unique invoice number. It significantly reduces compliance costs, simplifies administration and reconciliation for HORCT collections, and promotes transparency in tax dealings.
Subair highlighted that adopting the EFS allows businesses to ensure accurate calculations, eliminating the risk of mistakes associated with manual data entry. The system automatically applies relevant tax rates, saving businesses valuable time and resources. Additionally, the software provides secure and efficient record-keeping, simplifying audits and minimizing compliance risks.
Emphasizing the commitment to empowering businesses with innovative solutions, Subair urged all operators in the hospitality sector to adopt the EFS immediately. Failure to comply, he stated, would contravene provisions in Sections 7(1), 8, and 9 of the Hotel Occupancy and Restaurant Consumption Fiscalization Regulation 2017, attracting penalties as stipulated in Sections 11(2) of the HORC Law 2009.
Subair assured that the EFS is compatible with various e-commerce platforms and can seamlessly integrate with existing accounting systems. LIRS officials will be visiting establishments in the hospitality industry to integrate the software with existing systems and provide necessary assistance for a smooth transition to the EFS platform.
