In a bid to streamline tax processes and enhance revenue collection, the Lagos State Internal Revenue Service (LIRS) has announced the digitalization of the Hotel Occupancy and Restaurants Consumption Tax (HORCT) collection. The newly introduced system, known as the Eco Fiscal System (EFS), is an automated invoicing solution designed to revolutionize the collection of consumption taxes in the state.
According to Ayodele Subair, the Executive Chairman of LIRS, the EFS is a technological advancement aimed at simplifying compliance and improving efficiency in tax administration. The system is expected to ease the burden on businesses in the hospitality sector by providing an automated and digitized invoicing and collection process.
The press statement emphasized that the EFS offers real-time online consumption tax billing, collection monitoring, and instant issuance of receipts with unique invoice numbers. The system is designed to reduce compliance costs, facilitate easy administration and reconciliation for HORCT collections, and enhance transparency in the tax collection process.
Subair noted that the adoption of the EFS by businesses in the hospitality sector would ensure accurate calculations, eliminate the risk of manual data entry errors, and provide secure and efficient record-keeping. The system aims to simplify audits, minimize compliance risks, and empower businesses with innovative solutions for operational efficiency.
The Executive Chairman urged all operators in the hospitality sector to promptly adopt the EFS, emphasizing that operations on the system are effective immediately. Failure to comply with the new digitalized process is considered a contravention of the 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.