Drop Ship from USA to Germany

If I process an order in the UK that is drop-shipped from the US to Germany, do I need to prove export to zero-rate the Invoice ? The goods never enter the UK, they are shipped directly from the US to Germany (or any other country outside the UK)

To zero rate an Export you need to actually export from the UK. If the goods are never in the UK they are outside the scope of UK VAT. The export from the USA must comply with USA requirements and the import into Germany comply with German requirements. There will be German import VAT and possibly import duty depending on the goods and their value.

Hi,
As the goods never enter the UK then this will be outside the scope of UK VAT and so you will need no proof for UK VAT purposes.
Thank you.

Is it possible to get some kind of "official" response from HMRC as I am having great difficulty convincing our finance team that we do not need to provide proof of export for goods that never entered the country.

Or alternatively is there a clear description somewhere on the HMRC website ?

Just to be clear. We are a UK company with a US Subsidiary, we enter an order into our UK System and then place a PO to the US to drop-ship to Germany and then Invoice that Customer from the UK System.

The scope of VAT is defined in Section 4(1) of the VAT Act 1994: VAT shall be charged on any supply of goods or services made in the United Kingdom, where it is a taxable supply made by a taxable person in the course or furtherance of any business carried on by him A transaction is within the scope of UK VAT if the following four conditions are met: it is a supply of goods or services it takes place in the UK it is made by a taxable person (someone who is, or is required to be registered) It is made in the course or furtherance of any business carried on or to be carried on by that person. To decide whether a transaction is within the scope of UK VAT, you should be satisfied that it meets all these conditions. It is essential that you confirm that a transaction falls within the scope of VAT before moving to second-level questions of either mechanics, for example time of supply, input tax etc, or liability. When a transaction does not meet all of the conditions that is the transaction: is neither a supply of goods or services does not take place in the UK is not made by a taxable person, or is not made in the course or furtherance of business it is outside the scope of UK VAT.

Hi Keith,
You would only need evidence of export of goods if the goods were leaving the UK as that would justify an export from the UK.
If the goods never enter the UK then no evidence is required.
The place of supply rules for goods are determined by where the goods are when they are supplied so if the goods are not in the UK when supplied then the
Place of Supply will never be the UK.
Please see below:
VATPOSG2100 - Background: place of supply and its impact on the scope of VAT
Thank you