Transition of some services from business tax to VAT

On 10 April 2013, it was decided to extend the VAT pilot programme to the whole country on 1 August 2013.
As a result, the pilot programme will become national policy. Under this new policy

– Broadcasting
– Production
– publication and
– showing of film and television

will be transited from business tax to VAT.

The VAT pilot programme subjects transport services and certain modern services to VAT which were taxed with business tax previously. The programme started and was implemented in 2012 already in Beijing, Shanghai and 10 other regions.