Nigeria: Updated consumption tax collection process for hospitality sector (Lagos State)

Automate collection of the Hotel Occupancy and Restaurant Consumption Tax (HORCT)

Automate collection of the Hotel Occupancy and Restaurant Consumption Tax (HORCT)

The Lagos State Internal Revenue Service (LIRS) released a notice regarding the deployment of an upgraded consumption tax collection process for the hospitality sector in Lagos State.

Specifically, the LIRS introduced a digitalized payment solution platform called the Eco Fiscal System (EFS) specifically tailored for businesses in the hospitality sector such as hotels, event centers, restaurants, bars, and related facilities in Lagos State. All operators in the sector are required to download and install the EFS software, which will interface only with the point of sale (PoS) and transmits records of all sale transactions to the LIRS Online Tax System (OTS) in real time. If the collecting agent does not have a PoS, the LIRS will provide it. The primary objective is to automate the collection of the Hotel Occupancy and Restaurant Consumption Tax (HORCT).

Key features of the newly deployed EFS include:

  • Real-time online monitoring of consumption tax collection
  • Instant issuance of receipts with unique invoice numbers
  • Reduction in compliance costs for operators
  • Promotion of transparency

The directive is effective immediately upon the issuance of the notice, and failure to comply will be deemed a violation of the provisions outlined in Section 7(1), 8, and 9 of the Hotel Occupancy and Restaurant Consumption Fiscalization Regulation 2017.

Read a December 2023 report [PDF 290 KB] prepared by the KPMG member firm in Nigeria



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