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On 13 June 2023, the European Council and the European Parliament provisionally agreed upon rules to digitalize the Schengen Visa application process, which will allow eligible individuals to apply for a visa online. The new system would replace the existing visa sticker regime, wherein Schengen Visas are printed and placed in applicants’ passports. The proposed digitalization is intended to simplify the Schengen Visa application and issuance process by limiting in-person consular applications and increasing security in the Schengen Area by reducing the risk of falsification and theft of visa stickers. Once the new rules are approved, a new online platform will be launched, which will allow eligible individuals to file Schengen Visa applications and pay the processing fees online. The platform will then forward the application to the immigration authorities of the relevant country, and applicants will be notified of the outcome electronically. Visas will then be issued in digital format, as a 2D barcode, cryptographically signed.
A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.