The Lagos State Internal Revenue
Service (LIRS) has deployed an upgraded process for the collection of Hotel
Occupancy and Restaurants Consumption Tax (HORCT) in Lagos State.
The Executive Chairman of the
LIRS, Ayodele Subair, in a public notice directed at members of the public,
operators and owners of hotels, event centres, restaurants, bars, and other
related facilities in the state said the new collection process called the Eco
Fiscal System (EFS) is an automated invoicing solution, designed to
revolutionize the collection of consumption taxes in Lagos.
He said the EFS evolution is in
furtherance of LIRS’ commitment to building convenience into the payment of
taxes and easing compliance with tax laws.
“This technological advancement marks a
significant leap in our continuous efforts to enhance revenue collection,
streamline processes, and improve efficiency in tax administration. It
simplifies compliance and improves accuracy,” he said.
Traditionally, HORCT collection
has been a tedious task for operators in the past, the manual process often led
to errors, penalties and increased costs. However, with LIRS’ cutting-edge
software, businesses can now automate and digitize their invoicing and
collection processes. Built with operators in this sector in mind, EFS offers
real-time online consumption tax billing, collection monitoring, and instant
issuance of receipts with a unique invoice number. It also reduces compliance
costs, facilitates easy administration and reconciliation for HORCT collections,
and fosters transparency.
Mr. Subair said by adopting the
EFS, businesses can ensure accurate calculations, eliminating risk of mistakes
associated with manual data entry. The system automatically applies relevant
tax rates, saving businesses valuable time and resources. He added that the
software provides secure and efficient record-keeping, simplifying audits and
minimizing compliance risks.
“Our goal is to empower businesses with
innovative solutions that enhance their operational efficiency and minimize
compliance challenges. Businesses can focus on their core operations, leaving
the complex task of tax compliance to our reliable and automated system,” he
said.
He enjoined all operators in the
hospitality sector to adopt the Eco Fiscal System (EFS), emphasizing that
operations on the system become effective immediately as Failure to comply is a
contravention of the provisions in Sections 7(1), 8 and 9 of the Hotel Occupancy
and Restaurant Consumption Fiscalization Regulation 2017 which attracts
penalties as stipulated in Sections 11(2) of the HORC Law 2009.
Subair reiterated that EFS is
compatible with various e-commerce platforms and can seamlessly integrate with
existing accounting systems, ensuring a smooth implementation process. He
promised that LIRS officials would be visiting establishments in the
hospitality industry, to integrate the software with existing systems and
provide necessary assistance for a seamless transition to the EFS platform.
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