Canadian Shipping charges based on postal code
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I cannot find any settings within PayPal that allow me to set shipping charges based on the location of the customer. Our goods are sold flat rate based on total invoice, and we use Canada Post for shipping. There are no options based on region. This is very costly to me.
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What you're saying is valid ... that's the design of the system.
One option would be to use a 3rd party shopping cart. Third party carts normally are more flexible when it comes to shipping. With Payments Standard, there are limitations.
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I too am looking for a solution within Paypal to charge shipping to my customers in Canada based on postal code or zone. Does the advanced or pro version of paypal offer different options to charge shipping than the standard?
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Unfortunately not, you would need to find a 3rd party shopping cart that has the features you need or have something custom built.

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