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The notify_url will not be invoked if IPNs are turned off in your Sandbox account.
You can overwrite the IPN Listener URL listed in the Sandbox PayPal Account by sending the notify_url in your request.
If you have trouble logging into your Sandbox Account, make sure to go to https://developer.paypal.com log in to the dashboard and go to the Sandbox Accounts. Click on the three dots under Manage Account and click on view edit account next to the sandbox account that you will be updating. You can change the password, which will help you to be able to log in to the sandbox PayPal site to make the changes.
If you've already turned on IPNs in your sandbox account and the notify_url is still not working.
Unfortunately this is a known issue at the moment.
Please follow this thread to be updated when the issue is resolved.
Apologies for any inconvenience.
Yes, IPN is enabled from there.
I'm not sure that IPN will be invoked while making payment through button link created from here: https://www.screencast.com/t/oYob1kowAILY
Even I have tested by the IPN simulator and it was sent successfully.
Please let me know whether I'm going through the correct flow or not:
1. Created a button link from the sandbox business account as the above snap.
2. Making payment through the sandbox user account but didn't receive a notification on that IPN URL.
To whom it may concern, after checking this problem with the PayPal technical support, my problem was that although the PayPal payment got created, it was not executed (there's a final HTTP request to make).
After the payment execution request my IPN callback got called correctly.