Dublin will have to register in some EU state, and account for VAT on that transaction. The EU proposals don't go into detail as to how you determine in cyber space where a person is located, or indeed who is the person you are dealing with. Is the customer registered for VAT in the EU, or is he a private customer. It is proposed to create a user friendly database of all VAT registered persons so that the music supplier in New York can check on the status of his customer. The EU suggests that any major supplier would surely be reluctant to chalk up large unpaid tax bills in a major market.
Non compliance is ultimately too dangerous, they suggest.
A carrot is offered. The non EU supplier can choose the country in which he is to register. Logically, he will choose the country with the lowest standard VAT rate. Registration will only be required when sales into the EU exceed 100,000 Euros. The directive leaves a host of questions unanswered, including the position of non-EU suppliers already registered for some purpose within the EU, and how input credits will operate once they do register in their country of choice.