diff --git a/app/code/local/Voronoy/ExtraFee/Model/Observer.php b/app/code/local/Voronoy/ExtraFee/Model/Observer.php
index 2c42e4b..27c3724 100644
--- a/app/code/local/Voronoy/ExtraFee/Model/Observer.php
+++ b/app/code/local/Voronoy/ExtraFee/Model/Observer.php
@@ -25,6 +25,7 @@ class Voronoy_ExtraFee_Model_Observer
      * Process Sales Rule Model Before Save
      *
      * @param $observer
+     * @return $this
      */
     public function beforeSaveSalesRuleModel($observer)
     {
@@ -45,6 +46,7 @@ public function beforeSaveSalesRuleModel($observer)
      * Prepare Form for Sales Rule
      *
      * @param $observer
+     * @return $this
      */
     public function prepareFormSalesRuleEdit($observer)
     {
@@ -76,4 +78,20 @@ public function prepareFormSalesRuleEdit($observer)
                 Mage_SalesRule_Model_Rule::CART_FIXED_ACTION))
         );
     }
+
+    /**
+     * PayPal prepare request
+     *
+     * @param $observer
+     */
+    public function paypalPrepareLineItems($observer)
+    {
+
+        /* @var $cart Mage_Paypal_Model_Cart */
+        $cart = $observer->getEvent()->getPaypalCart();
+        $address = $cart->getSalesEntity()->getIsVirtual() ?
+            $cart->getSalesEntity()->getBillingAddress() : $cart->getSalesEntity()->getShippingAddress();
+        $feeAmount = $address->getExtraFeeRuleAmount();
+        $cart->updateTotal(Mage_Paypal_Model_Cart::TOTAL_TAX, $feeAmount);
+    }
 }
\ No newline at end of file
diff --git a/app/code/local/Voronoy/ExtraFee/etc/config.xml b/app/code/local/Voronoy/ExtraFee/etc/config.xml
index 46c890a..e65a8f5 100644
--- a/app/code/local/Voronoy/ExtraFee/etc/config.xml
+++ b/app/code/local/Voronoy/ExtraFee/etc/config.xml
@@ -119,12 +119,20 @@
             </salesrule_rule_save_before>
             <adminhtml_block_salesrule_actions_prepareform>
                 <observers>
-                    <voronoy_extrafee>
+                    <voronoy_extrafee_prepare_form>
                         <class>voronoy_extrafee/observer</class>
                         <method>prepareFormSalesRuleEdit</method>
-                    </voronoy_extrafee>
+                    </voronoy_extrafee_prepare_form>
                 </observers>
             </adminhtml_block_salesrule_actions_prepareform>
+            <paypal_prepare_line_items>
+                <observers>
+                    <voronoy_extrafee_paypal_prepare>
+                        <class>voronoy_extrafee/observer</class>
+                        <method>paypalPrepareLineItems</method>
+                    </voronoy_extrafee_paypal_prepare>
+                </observers>
+            </paypal_prepare_line_items>
         </events>
     </global>
     <frontend>