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Have they opened the dispute as 'item not received' or 'item not as described'?
Is it a paypal disute or an ebay one?
If ebay, you should just work through the resolution centre and shouldn't matter where their account is registered.
Would have thought Paypal would work similarly.
Get in touch with customer services for whichever it is through if you are having issues resolving it because of the German thing, they are there to help.
Sold some handlebars on ebay. Sent the wrong handlebars to the buyer, sent messages to try and rectify asking for them to return them to me so I could send the right ones. Obvs offering to pay postage.
Didn't hear owt so assumed they wanted to keep the others. So I re-sold the handlebars they won.
Now I have noticed they have opened a paypal dispute to get their ££ back. Paypal have taken the funds from me and they are on hold.
I can't address the case as their ebay account is on the German site which ebay uk directs me to.
So they currently have a set of my handlebars (the wrong ones I sent out) and potentially a full refund.
What can I do?