What did the 2014 VAT reform change for businesses in the entertainment industry?

As of January 2014, taxation for “Modern Services” was made subject to Value-added Tax (VAT) rather than the previous Business Tax (BT). “Modern Services” includes radio, film and television production, distribution and broadcasting services. The VAT rate is set at 6 percent; however, there are certain exceptions such as small-scale VAT taxpayers who are subject to a lesser VAT rate of 3 percent.