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The Lagos State Internal Revenue Service has stated that the process for collecting hotel occupancy and restaurant consumption taxes from owners of the state’s facilities—hotels and restaurants—will be digitalized.

Lagos State’s public operators and owners of hotels, event centers, restaurants, bars, and other related facilities should be aware that the state’s new automated invoicing system, known as the Eco Fiscal System, is intended to completely transform the way consumption taxes are collected, according to a press release made available to PUNCH on Monday by LIRS Executive Chairman Ayodele Subair.

He underlined that the EFS progress is advancing LIRS’s objective of simplifying tax payment and tax law compliance.

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The statement read in part, “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.

“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,” it added.

Subair further affirmed that by adopting the EFS, businesses could ensure accurate calculations, eliminating the risk of mistakes associated with manual data entry, adding, “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 minimise compliance challenges. Businesses can focus on their core operations, leaving the complex task of tax compliance to our reliable and automated system.”

Along with instructing all employees in the hospitality industry to accept the EFS, he emphasized that noncompliance with the rules outlined in Sections 7(1), 8 and 9 of the Hotel Occupancy and Restaurant Consumption Fiscalization Regulation 2017 will result in penalties as outlined in Sections 11(2) of the HORC Law 2009, as operations on the system take effect immediately.


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