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If I've built a website for a customer, but the customer ultimately decides to abandon it, before launch, do I still need to charge GST for the work completed?

GST is for goods and services, and since the site is abandoned, would this mean that technically no actual service has been provided?

I'm in Australia. I'm assuming this would make a difference.

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  • What contractual arrangements do you have with the client ?
    – Hilmar
    Commented Aug 29, 2022 at 12:06

2 Answers 2

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If I've built a website for a customer - you stated that you have in fact completed the task. So services have been provided. What the customer did or didn't do with the product of your service doesn't really matter for the taxing authority. Your services may fall under an exclusion, but from what you've described it doesn't sound likely.

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  • Thanks, I was thinking about a case some time ago where Qantas was attempting to claim back GST for booked seats, where the passenger didn't actually fly. The logic, as far as I understand it, was that a service hadn't been provided, and therefore tax didn't apply. I'm not sure if it makes a difference or not, but the website was never formally handed over to the customer, as they cancelled the project before that point. Anyway it seems safest to include GST. Commented Aug 29, 2022 at 11:43
  • In the airline case the service hadn't been provided and the price of the ticket became a fee for cancellation. But you actually provided the service. Commented Aug 29, 2022 at 13:51
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You provided the goods/services to your client. Whether your client did or did not provide anything to their customers is irrelevant. GST is applicable on your services/invoices to your client.

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