May have been asked and answered before, but in real life you call a mayday, can you do it on the sim? Please be kind!
Moved to #gd-commsupport:anc as this is an ATC question.
No such capability using default ATC.
Nope that option has, to the best of my knowledge never been implemented in any sim.
In the current state of the sim ATC simply yell it out loud and then use the PIC authority that this action gives to fly as needed for a safe conclusion of your flight.
Of course in real life you would be asked to fill out a form or two, best case make a phone call to explain the exact nature of your emergency, once you are safely on the ground.
It all depends on how far away from normal procedures you had to go and how much ATC had to work to keep you and everyone else safe.
Try calling out Mayday on Vatsim, and see how short your Vatsim flying career can be .
So, what can you do on VATSIM when you want to declare an emergency? Donât forget, terrorist attacks, medical conditions or any âfictionalâ emergency are not allowed. Kind of. You can do it, but ATC, as well as pilots, wonât be pleased.
What is the emergency policy on VATSIM?
When you declare a MAYDAY,you are required to squawk 7700(to Alert ATCâs),if possible immediately after you declare the emergency. (7700 is not for PANâs). Simulating hijacking or terrorist attack is strictly prohibited,and squawking 7500 will disconnect you from the server.
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Not quite the same thing, but a while back in x-Plane, if you changed your squawk to 7700, then landed at London CityâŠthe fire trucks would come out and meet you!
Back in the FSX days (2007 ish), there was 3rd party ATC products such as âRadar Contact 4â that had emergency procedures you could use. Itâs long gone now but manual here, and was a bit more advanced than what we have in the stock ATC today.
On VATSIM the nearest Iâve ever seen (heard, I guess) is someone declared a go-around pretty late and the tower controller wanted to record a reason why. The reply was âPut down smooth brain..â. 
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Iâve heard a few try to do it and just not get why ATC, controlling 50+ airplanes in the ARTCC region, was denying them.
IF you really want to do it on Vatsim you should ask the controller first. You can save that request for later if you already see 50 aircraft incoming but if the airspace is quite relaxed talk to them. I wouldnât do it if there were more than one controllers involved. But if there is only a Radar or Tower controller, ask. But leave it up to them. It can be fun and a great challenge for everyone involved but it can also be a PITA like in reality and other pilots who have little time for flying anyway because the kids are around, the wife is nagging etc wonât be happy about 10 emergencies every day 
And turn Service Based Failures or random stuff off on Vatsim.
The ATC add on called PF3 has the ability to declare an emergency. When you declare a emergency, ATC gives you some options of either returning to your departure airport or the nearest suitable airport depending on the aircraft you are flying.
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