Reverse VAT for EU client from UK business - Tax Note

We're a UK based company. We have issued an invoice to an Irish client with 0% VAT (Zero Rate EC service) because we are not VAT registered, because we do not need to be unless we exceed 85,000 GBP in revenue AFAIK. The irish client is arguing we need a tax note describing why we are not charging VAT, and that he cannot pay until we provide a fiscal reason for the tax exemption, otherwise he will have to pay local tax. Our accountant says he is wrong, and that a message saying we are not VAT registered is enough, therefore . Who is right here? I've tried to understand online and as far as I can see, VAT is payed in the country that has bought the service, i,e., its up to the irish client's accountant to see if and how to pay VAT, while we pay / charge no VAT.

Hi,

If you have not gone over the VAT threshold then there is no requirement to register for VAT. You would not need to inform HMRC of this nor would we be able to send you out a letter or certificate confirming this.

Most services are dealt with under the reverse charge procedure and so it is the responsibility of the business customer to account for the VAT in the country where they belong. You can see guidance here:

The place of supply rules for services

Thank you.

Hi You should not issue an invoice mentioning charging VAT if you are not VAT registered. If you have issued an invoice showing you have charged 0% VAT then this is still a rate of VAT so you have in effect charged VAT but at 0% .Your customer may therefore be expecting you to mention a VAT number. If you are not VAT registered then you should not mention VAT at all on your invoices.