The Lagos State Internal Revenue Service has introduced a digital system for collecting revenue from hotels and restaurants within the state.
According to The PUNCH, the Executive Chairman of LIRS, Ayodele Subair, revealed that the new method, known as the Eco Fiscal System, aims to modernize the collection of Hotel Occupancy and Restaurants Consumption Tax.
This automated invoicing solution is designed to streamline tax collection processes and enhance compliance with tax laws, emphasizing LIRS’ dedication to making tax payment more convenient for operators and owners of various hospitality establishments in Lagos State.
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.”
Additionally, he urged all hospitality sector operators to embrace the EFS, highlighting that its implementation is now in effect. Failure to comply constitutes a violation of Sections 7(1), 8, and 9 of the Hotel Occupancy and Restaurant Consumption Fiscalization Regulation 2017. This non-compliance may result in penalties outlined in Sections 11(2) of the HORC Law 2009.