This dress is amazing on you.
is standard and not uncommon. Many people will be more likely to use "looks", but the meaning is roughly the same here.
"Looks" simply explicitly comments on the visual appearance of the dress. Saying "this dress is amazing on you" likely also refers to visual appearance, but it could be a more general statement. For a contrived example, if someone were obligated to wear a dress with the logo of their rival sports team, it might be "amazing" in the sense of being surprising or unexpected.
In most cases however, the meaning is the same either way. "Looks" is slightly less direct, which can be a social subtlety when discussing another's appearance.