I recently had this issue with paypal standard (OOB Woocommerce paypal intergration)
After speaking with Paypal and looking through the Woocommerce manual, I discovered that there is a setting within Woocommerce to send the shipping address to paypal.
Go to woocommerce>settings>checkout>paypal
Under ‘Advanced options’, there is a heading called ‘Shipping details’ and a checkbox labeled ‘Send shipping details to PayPal instead of billing’. Once this option is checked, the customers shipping address will be forwarded to paypal when the customer pays.
I made this change to my site, purchased an item and payed via paypal. I then verified with paypal customer services that the shipping address had been received.
