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On 23 March 2016, Ministry of Finance (MOF) and State Administration of Taxation (SAT) of the People’s Republic of China (PRC) jointly issued “Notice of Taxation on Full Launch of the Pilot Scheme on Levying Value-added Tax in Place of Business Tax” Caishui [2016] 36 (Circular 36), which indicates that with effect from 1 May 2016, the transformation of pilot programme from Business Tax to VAT (B2V Reform) will cover sectors of construction, real estate,financial services and consumer services and China enters into a new era of VAT.