If paypal is asking for the shipping address, then no, paypal does not have that option.
It is a standard paypal payment page -- the customer can choose from their addresses on file or select no shipping address is required.
However, if the shipping address is being asked for on your site, before they go to paypal to pay, then the change is something you have to do in the product set up.
When creating a new virtual product, there are some option buttons right below where you put the price in.
The first one should be set to Yes (product is virtual).
The second one will depend on your needs, but for me that's usually just "free shipping".
THose will remove the question of shipping address from your pages.