They "abuse" it from the point of view from the countries where they don't pay the VAT.... f.e. the UK would like Amazon to pay VAT in the UK, and not in Luxembourg. So this new law is meant to prevent that, but at the same time waltz over small companies.
They might like/want X but they will have to negotiate and endup with X-Y or nothing, since negotiating something as important as VAT while threatening to leave the club is politically counterproductive.
It's similar to the changes a few years ago to the channel islands that was used (and some say abused) by online CD and DVD stores, including some large high-street names.
Now, the way this has been implemented, and the speed at which a lot of small retailers will have to change their systems is unfortunate, and the EU have shot themselves in the foot there.
And yes the VAT rules really do add alot of overheads on a business and bloat, which companies elsewhere are not subjected to.
I have raised this with Revenue in Ireland (pointing at competitors in US, China etc not held back by paperwork) they ignored it and clarified (I wanted it in writing, I recommend every business has a clarification in writing if they are not sure about the VAT position, to cover their asses) that YES we have to charge 23% VAT to ANYONE from EU29 countries, and 0% VAT for outside.
Tho' nothing was said about how this is to be measured, So I am keeping timestamps, ip addresses and billing addresses when accepting payment for our hosting products.
All in all its just a pain in the rear having to jump thru' this loops with no benefit to my company and plenty of downside :(