China is replacing its business tax with a value-added tax, or VAT starting today. It's an exciting change that is going to save a lot of Chinese businesses a lot of money. Beijing has extended its VAT pilot program to four more sectors - property, construction, finance and consumer services.  Now almost all goods and services are covered by VAT. 

In his Government Work Report back in March, Premier Li Keqiang said the reform would ensure lighter taxes for all sectors. China is the first country that apply VAT in the financial sector. This is the most fundamental tax reform since 1994 when China launched the system of tax distribution. Starting today, the business tax, once the most important tax for local government revenue, is history.