Lagos State Implements Digital System for Revenue Collection from Hotels and Restaurants

According to the statement, the implementation of the EFS reflects LIRS’ commitment to simplifying tax payment and ensuring compliance with tax laws, marking a significant advancement in revenue collection, process streamlining, and efficiency improvement in tax administration.

Previously, the manual process of HORCT collection presented challenges such as errors, penalties, and increased costs for operators in the industry. However, with the introduction of LIRS’ cutting-edge software, businesses can now automate and digitize their invoicing and collection processes.

The EFS is designed to offer real-time online consumption tax billing, collection monitoring, and instant issuance of receipts with a unique invoice number. In addition, it reduces compliance costs, simplifies administration and reconciliation for HORCT collections, and promotes transparency.

Subair highlighted that by adopting the EFS, businesses can ensure accurate calculations, eliminate the risk of manual data entry errors, and benefit from secure and efficient record-keeping, thus simplifying audits and minimizing compliance risks.

He emphasized the goal of empowering businesses with innovative solutions to enhance operational efficiency and minimize compliance challenges, allowing them to focus on core operations while leaving tax compliance to the reliable and automated system.

Subair also urged all operators in the hospitality sector to adopt the EFS with immediate effect, emphasizing that failure to comply would result in penalties as stipulated by the provisions in Sections 7(1), 8, and 9 of the Hotel Occupancy and Restaurant Consumption Fiscalization Regulation 2017, as outlined in Sections 11(2) of the HORC Law 2009.