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Lagos state IRS Announces implementation of enhanced income course for the hospitality industrytte

 

The Lagos State Inland Revenue Service (LIRS) has recently implemented an advanced system for the collection of the Hotel Occupancy and Restaurant Consumption Tax (HORCT) in Lagos State. This new system, named the Eco Fiscal System (EFS), is an automated billing solution aimed at enhancing the efficiency of tax collection from hotels, event centers, restaurants, bars, and similar establishments.

Ayodele Subair, the Executive Chairman of LIRS, announced this development in a public notice. He highlighted that the introduction of the EFS is part of LIRS’ ongoing efforts to simplify the tax payment process and ensure better compliance with tax regulations. The automated nature of the EFS is expected to significantly streamline the tax collection process, making it more convenient for taxpayers and improving overall tax administration in Lagos State.

“This technological development marks a major leap in our ongoing efforts to enhance income assortment, streamline processes, and enhance effectivity in tax administration. “It simplifies compliance and improves accuracy.”

Historically, HORCT assortment has been a tedious job for operators; The handbook course of typically led to errors, penalties, and elevated prices. Nonetheless, with LIRS’ cutting-edge software program, companies can now automate and digitize their billing and assortment processes. Created with operators in this sector in thoughts, EFS provides real-time online consumption tax billing, assortment monitoring, and on-the-spot issuance of receipts with a singular bill quantity. It additionally reduces compliance prices, makes it simpler to handle and reconcile HORCT collections, and encourages transparency.

Subair mentioned that by adopting the EFS, firms can guarantee correct calculations, eliminating the chance of errors related to handbook knowledge entry. The system routinely applies related tax charges, saving companies helpful time and resources. He added that the software program offers safe and environment-friendly document maintenance, simplifying audits and minimizing compliance dangers.

Ayodele Subair emphasized that the primary goal of the Eco Fiscal System (EFS) is to provide businesses with innovative solutions that boost their operational efficiency while minimizing the challenges associated with tax compliance. He pointed out that the EFS allows companies to focus on their core activities by taking over the complex task of tax compliance through a reliable and automated system.

Subair also urged all operators in the hotel sector to adopt the EFS immediately. He stressed that the implementation of this system is effective immediately, and non-compliance will be considered a violation of the Restaurant Consumption and Resort Occupancy Management Rules 2017. This non-compliance is subject to penalties as outlined in Articles 11 (2) of the Hotel Occupancy and Restaurant Consumption (HORC) Act of 2009.

Subair reiterated that EFS is appropriate with varied e-commerce platforms and may be seamlessly built-in with current accounting methods, making certain of a clean implementation course. He promised that LIRS officers would go to hospitality business institutions to combine the software program with current methods and supply crucial help for a seamless transition to the EFS platform.

“For extra inquiries, taxpayers are suggested to go to the LIRS website: www.lirs.gov,ng

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