The Lagos State Internal Revenue Service has deployed a digital platform called the Eco Fiscal System to tax hotels, event centres, restaurants, bars, and other related facilities in the state.
The platform is aimed at digitising the LIRS revenue collection process in the hospitality sector across the state.
According to a public notice by the LIRS Executive Chairman, Ayodele Subair on Sunday, the new system is an upgraded process for the collection of Hotel Occupancy and Restaurants Consumption Tax across the state.
The LIRS chairman explained that the EFS “is an automated invoicing solution, designed to revolutionise the collection of consumption taxes in Lagos State.”
He added that the new platform is, “in furtherance of LIRS’ commitment to building convenience into the payment of taxes and easing compliance with tax laws.”
Mr Subair said the deployment of the LIRS’ cutting-edge software which will ensure that businesses are able to automate and digitise their invoicing and collection processes, became imperative because the manual process often led to errors, penalties and increased costs.
“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,” he stated.
He assured that the EFS system would allow businesses to ensure accurate calculations and eliminate risk of mistakes associated with manual data entry, adding that the system automatically applies relevant tax rates, saving businesses valuable time and resources, as the software provides secure and efficient record-keeping, simplifying audits and minimising compliance risks.
Urging operators in the hospitality sector to adopt the new system which takes effect immediately, he warned that that failure to comply would be in contravention “of the provisions in Sections 7(1), 8 and 9 of the Hotel Occupancy and Restaurant Consumption Fiscalisation Regulation 2017 which attracts penalties as stipulated in Sections 11(2) of the HORC Law 2009.”
The LIRS boss promised that its officials would visit establishments in the sector to integrate the software with existing systems and provide necessary assistance for a seamless transition to the new platform.