Lagos State Internal Revenue Service (LIRS) has announced immediate deployment of an upgraded process for the collection of Hotel Occupancy and Restaurants Consumption Tax (HORCT) in the state.
Executive Chairman of 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 Lagos State, said the new collection process, called the Eco Fiscal System (EFS), is an automated invoicing solution designed to revolutionise the collection of consumption taxes in Lagos State.
He said that the EFS evolution is in furtherance of LIRS commitment to building convenience into the payment of taxes and easing compliance with tax laws.
Subair said that by adopting the EFS, businesses could ensure accurate calculations to eliminate risk of mistakes associated with manual data entry.
The system, according to him, 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 minimising compliance risks.
“Our goal is to empower businesses with innovative solutions that enhance their operational efficiency and minimise 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, therefore, enjoined all operators in the hospitality sector to adopt the EFS, emphasising 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 Fiscalisation 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 could 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.
