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Practical Handbook VAT 2021

Extraordinary circumstances

When the development of activities to which the simplified system is applicable is affected by fires, floods or other exceptional circumstances affecting a specific sector or area, the Minister of Finance may authorise, on an exceptional basis, the reduction of the rates or modules.

For the financial year 2021, the reduction on the tax payable for current operations of the simplified Value Added Tax system is maintained for economic activities carried out in the municipality of Lorca, in accordance with the provisions of the fourth additional provision of Order HAC/1155/2020, of 25 November.(BOE of 4 December).

When the development of activities to which the simplified system is applicable is affected by fires, floods, subsidence or major breakdowns in industrial equipment that entail serious alterations in the development of the activity, the interested parties may request the reduction of the rates or modules at the Administration or Delegation of the State Tax Administration Agency corresponding to their tax domicile within a period of thirty days from the date on which these circumstances occur, providing the evidence they deem appropriate.Once the effectiveness of these alterations has been accredited to the Tax Administration, the appropriate reduction of the rates or modules will be agreed.

Likewise, in accordance with the same procedure as indicated in the previous paragraph, a reduction in the rates or modules may be requested in cases where the owner of the activity is temporarily incapacitated and has no other staff employed.