VPN is to bypass the restrictions that your country or ISP may impose on accessing a specific site, but at the same time that service allows you to use access, but if the service is basically preventing you from certain things, then using a VPN will increase your problems and may lead to freezing / banning your account if it is in violation of the terms of use.
If PayPal blocks some services because they are not available in your country, do not use VPN and search for alternatives.
Well, I'm not sure it 's lawful in my country to ban someone because he's using a VPN, people are free to use proxies, TOR and other things in order to avoid to disclose their IP address. In addition Paypal knows my identity and my exact location, so it's up to them to allow or disallow me to access this feature without banning me.