LIRS Clarifies Position On Hotel Occupany, Restaurant Consumption Tax

The Lagos State Internal Revenue Service (LIRS) has issued a
public notice providing clarifications on issues relating to
definitions of terms and obligations of landowners, particularly
owners and/or managers of hotels, event centres, restaurants and
other facilities of their obligations as consumption tax collecting
agents for the state apex tax authority.

The HORC Law 2009 is designed to impose tax on goods and
services consumed in hotels, restaurants and events centres within
the territory of Lagos State.

It has a commencement date of 22nd June 2009 and empowers the
LIRS to administer, collect and enforce the law, in line with the
Lagos State House of Assembly legislation or acts of
Parliament.

Some of the key points in the public notice were that Section 17
of the Hotel Occupancy and Restaurant Consumption Tax (HORC) law
(2009) described a hotel facility and event centre as: ‘hotel
facility’ includes a room, suite, hall, open space or other
facility or resource centre which may be let out for a fee within a
hotel or other facility, under a lease, concession, permit, right
of license, contract or other agreement.

This includes short-let apartments, playgrounds and any other
facility available for use for a fee under a lease or permit.

It stated that ‘event centres’ include all halls, auditoriums,
fields and places designated for public use, at a fee, adding that
‘Restaurant’ includes any food sale outlet, bar, tavern, inn or
café whether or not located within a hotel. This includes
supermarket food courts/food section and delis with or without a
sit-in facility whether or not located within a hotel.

The notice added the management of the establishments defined
are obligated by law to charge, deduct and remit their monthly
consumption tax, file monthly returns and perform all other duties
as detailed in the HORC Law 2009.

The Lagos State Internal Revenue Service (LIRS) has issued a
public notice providing clarifications on issues relating to
definitions of terms and obligations of landowners, particularly
owners and/or managers of hotels, event centres, restaurants and
other facilities of their obligations as consumption tax collecting
agents for the state apex tax authority.

The HORC Law 2009 is designed to impose tax on goods and
services consumed in hotels, restaurants and events centres within
the territory of Lagos State.

It has a commencement date of 22nd June 2009 and empowers the
LIRS to administer, collect and enforce the law, in line with the
Lagos State House of Assembly legislation or acts of
Parliament.

Some of the key points in the public notice were that Section 17
of the Hotel Occupancy and Restaurant Consumption Tax (HORC) law
(2009) described a hotel facility and event centre as: ‘hotel
facility’ includes a room, suite, hall, open space or other
facility or resource centre which may be let out for a fee within a
hotel or other facility, under a lease, concession, permit, right
of license, contract or other agreement.

This includes short-let apartments, playgrounds and any other
facility available for use for a fee under a lease or permit.

It stated that ‘event centres’ include all halls, auditoriums,
fields and places designated for public use, at a fee, adding that
‘Restaurant’ includes any food sale outlet, bar, tavern, inn or
café whether or not located within a hotel. This includes
supermarket food courts/food section and delis with or without a
sit-in facility whether or not located within a hotel.

The notice added the management of the establishments defined
are obligated by law to charge, deduct and remit their monthly
consumption tax, file monthly returns and perform all other duties
as detailed in the HORC Law 2009.