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My suggestion would be to hide that field in your site, and always send a specific address as the shipping address. Unless PayPal thinks its some kind of fraud it should work.
If the only thing you are going is creating a PP button, You have no control over what information PayPal asks for. ( As the button redirects them to PayPal’s Site.) I am not sure if subscription Buttons work for you, but they may not ask for a shipping address.
Finally, your end Users can just enter some fake address, either to you or two PayPal. If your not actually gonna ship anything it doesn’t matter.
EDIT: Did a bit more looking and found this. It is PayPal Documentation on Buttons. maybe useing BUTTONSUBTYPE
(Optional) The use of button you want to create. It is one of the following values:
PRODUCTS - button is used to purchase products; default for Buy Now and Add to Cart buttons
SERVICES - button is used to purchase services
EDIT2: Also see this. Look for no_shipping in Payment Pages section.