Fashion expansion

I am the managing director of a small garment factory that until now has only supplied retailers in the UK. My query relates to an unexpected opportunity that arose when attending Euro 2012.

A buyer for a German retailer was interested in what I was wearing at one of the matches and submitted a large order.

Although my factory does not have the capacity to fulfil the order I met a factory owner from Poland at another match who said he would be pleased to take on the production work on a subcontract basis.

Logistically it makes sense for me to ask the Polish factory to produce the goods and deliver them directly to the German retailer. I am hopeful there may be future opportunities to supply other EU retailers using the same arrangement.

I would prefer not to register for VAT in another EU country but...