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Please suggest regarding national visa application field no. "26. Have you been expelled or deported from Germany, had an application for a residence permit rejected, or been refused entry into the Federal Republic of Germany?". Shall I need to mention Yes or No? If My previous visa application is refused to grant Visa due to the following reason?

"The Bachelor degree submitted is not registered as a recognised degree in Germany. The Master degree is only provisional. We need the final degree. Thus one of the requirements for a Blue Card EU was not meet and visa could not be granted"

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    ‘The visa could not be granted’. What is unclear about that in the context of your current application? You must answer ‘yes’. – Traveller Aug 4 at 8:17
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    @Traveller Do you mean to say that a residence permit and a visa are the same thing in this context ? Or that a visa refusal and an entry refusal are the same thing ? Because the quoted text does not explicitly mention visa refusals. – fkraiem Aug 4 at 9:01
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    The quoted text mentions ‘residence permit rejected’. An EU Blue Card is a work and residence permit, AFAIK ec.europa.eu/immigration/blue-card/essential-information_en Entry refusal is not the same as a visa refusal. – Traveller Aug 4 at 9:09
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    The Blue Card EU is a residence permit. So the answer is yes, obviously. – Janka Aug 4 at 23:20
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    For this doesn't sound like a "visa rejected" question and more like "have been to germany illegally" question. Is there a german text on the application you could post? – Christian Aug 5 at 11:20
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If you're not certain whether to mention something, you should mention it. It's not like they don't know about it; they will have it in their records. If you don't mention it, you will appear deceptive, which will work against you. In fact, if you seem deceptive, your application will probably fail for that reason alone.

So you should mention it along with a brief explanation of the reason. It appears that your prior application was slightly premature, which is not a particularly bad reason to be rejected. Failing to meet some administrative requirement does not reflect particularly on your character, for example.

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The refusal reason really sounds like “if you get your final degree, you will most likely get this visa”. So the refusal shouldn’t cause you any problems at all.

On the other hand, saying “no” to the question about refusals would be not the truth, you can be quite sure that they know it’s nit the truth, and that doesn’t just “work against you”, it can completely destroy any chance to get a visa for the next ten years.

So answer “yes” and show the text of the refusal.

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When applying for a visa, the people processing the application are looking for reasons to deny you a visa. If they don't find any then they will grant it to you.

If they find that you misrepresented anything in your application (i.e. lied about something on your application), that raises a big red flag, and they will refuse the visa.

Always answer truthfully. Even though it sounds like answering "yes" to the question "have you ever been refused a visa" will lead to bad things happening, all it means is they will check the circumstances around that previous refusal - and in this case it sounds like it should not be a problem.

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