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Practical Handbook VAT 2022

Extraordinary circumstances

Where the development of activities to which the simplified scheme applies is affected by fires, floods or other exceptional circumstances affecting a particular sector or area, the Minister for Finance and the Civil Service may exceptionally authorise a reduction in the rates or modules.

For the financial year 2022, 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 HFP/1335/2021, of 1 December.(BOE of 2 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.