The Lagos State Internal Revenue Service has announced the digitalisation of the process of revenue of
Hotel Occupancy and Restaurants Consumption Tax from owners of the facilities (hotels and
restaurants) in the state.
According to the Executive Chairman of LIRS, Ayodele Subair, in a press statement on Monday, the
public operators and owners of hotels, event centres, restaurants, bars, and other related facilities in
Lagos State should be aware that the new collection process called the Eco Fiscal System is an
automated invoicing solution, designed to revolutionize the collection of consumption taxes in the state.
He stressed that the EFS evolution is furthering LIRS’ commitment to building convenience into paying
taxes and easing compliance with tax laws.
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.
“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.
He also enjoined all operators in the hospitality sector to adopt the EFS while emphasizing that
operations on the system become effective immediately and failure to comply is a contravention of the
provisions in Sections 7(1), 8 and 9 of the Hotel Occupancy and Restaurant Consumption Fiscalization
Regulation 2017 which attracts penalties as stipulated in Sections 11(2) of the HORC Law 2009.
