The Lagos State Internal Revenue Service has announced the digitization of collecting Hotel Occupancy and Restaurants Consumption Tax from businesses in the hospitality sector. 

The new collection process, called the Eco Fiscal System, is an automated invoicing solution that will simplify and streamline the payment process for businesses.

According to The PUNCH, LIRS Executive Chairman Ayodele Subair said the EFS is part of the agency’s commitment to building convenience into paying taxes and easing compliance with tax laws. 

“This technological advancement marks a significant leap in our continuous efforts to enhance revenue collection, streamline processes, and improve efficiency in tax administration,” he said.

The EFS will eliminate the need for businesses to manually calculate and collect HORCT, which has been a source of errors, penalties, and increased costs in the past. EFS will also provide businesses with real-time online billing, collection monitoring, and instant issuance of receipts with a unique invoice number.

“By adopting the EFS, businesses can ensure accurate calculations, eliminate the risk of mistakes associated with manual data entry, and save valuable time and resources,” Subair said. 

“The software also provides secure and efficient record-keeping, simplifying audits and minimizing compliance risks.”

Subair urged all businesses in the hospitality sector to adopt the EFS, which becomes effective immediately. 

Failure to comply with the new system is a contravention of the Hotel Occupancy and Restaurant Consumption Fiscalization Regulation 2017 and may result in penalties.