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As far as I understand VAT's role in the economy, the Value Added Tax is offset to the last link of a value-adding chain: the consumer.

This creates the incentive of further adding value to a product/service and thus creating more economic output.

Amazon may be paying other taxes, but VAT is paid by the consumer.

It's a sales tax. In the EU it's fitted into the price the consumer sees. From every sale Amazon makes 20% of that is going to the government.

You could easily argue every tax on Amazon is a tax on the consumer. If you increase the cost of Amazon doing business, prices go up.

Just because the seller is responsible for transferring the tax revenue to the tax office does not mean that the seller is the one paying it.