Many future drivers still do not know that VID may refund part of the money paid for driving school as eligible education expenses. This means that part of the paid personal income tax can be recovered back to a bank account.

This is not a discount offer. It is a real opportunity to recover money from VID.

If driving school costs in Latvia often exceed EUR 1000, the possibility to recover up to EUR 612 becomes especially significant. The more a person spends on driving school, the more important it is to organise the documents correctly and use the opportunity to recover taxes.

In the case of Presto, the benefit is even greater — thanks to electronic driving organisation, a transparent payment system, more favourable contract terms for the customer and a more efficient training process, students often already save approximately EUR 200–300 compared with the average market model. Together with the VID refund, the total financial benefit becomes very significant.

VID refunds money only in certain cases

It is important to understand — not all driving schools will automatically allow you to receive a VID refund.

In order for driving school expenses to be submitted to VID as eligible education expenses, the educational institution must have an education licence. This is important because VID may assess such expenses as professional development or acquisition of skills required for work. Nowadays, a driving licence is a major advantage in many workplaces, and in some professions — even a necessity. According to Presto’s analysis of publicly available information and registers, out of approximately 200 driving schools listed by CSDD, only 3 are registered as educational institutions.

Presto has such a licence and is registered in the state register of educational institutions.

Education institution licence No. 3380802315.

That is why Presto students can use the opportunity to recover part of the money paid from VID.

How much can be recovered from VID for driving school?

In practice, people often say:

“The state refunds driving school.”

However, it would be more accurate to say:

VID refunds part of the paid personal income tax for education expenses.

The amount of the refund depends on:

• how large the expenses have been,
• how much tax has been paid during the year,
• in whose name the payments have been made,
• whether the person is a dependant.

In many cases, it is possible to recover up to 25.5% of the eligible costs. Within one year, the limit is up to EUR 600 in eligible expenses, which in practice means a refund of up to EUR 153 per year.

However, importantly — if driving school costs exceed this limit, the unused part can be carried forward to the next three years. This means that expenses can also be declared in the 2nd, 3rd and 4th year, gradually recovering a larger amount.

In this way, the maximum theoretical refund amount is EUR 612. It can be received if the person:

• has paid at least EUR 2400 for eligible driving school services;
• has paid sufficient personal income tax in each year;
• has not used the EUR 600 annual limit for other education, medical or relevant eligible expenses;
• the tax rate remains 25.5% in the following years.

Therefore, it is important for many students to understand in good time:

• in whose name the payments should be made,
• who will declare the expenses,
• whether the young person is a dependant,
• whether the parents pay taxes in Latvia.

Who can receive a VID refund for driving school?

1. The student themselves

If the student:

• works,
• pays personal income tax in Latvia,
• and the payments are made in their name,

then they can submit the receipts themselves in the VID annual income declaration and recover part of the money.

This is the simplest option.

2. Parents can recover expenses for a child

If the student is:

• a school pupil or student,
• or is registered as a parent’s dependant (usually until the age of 24 if they continue studying and do not receive significant income),

then the parents can declare the driving school expenses.

This is especially relevant for young people who:

• do not yet work,
• pay little tax,
• or do not pay personal income tax at all.

In this situation, it is much more beneficial if the payments are made by a parent who pays taxes in Latvia.

Dependant status is very important

Many people do not take this into account.

If a young person is registered as a dependant, this can be a significant factor for tax refund opportunities.

Therefore, before making driving school payments, it is worth:

• checking the information in VID EDS,
• understanding who will declare the expenses,
• and how to organise the payments correctly.

How to submit driving school expenses in the VID EDS system?

To recover money for driving school, everything is done through the VID Electronic Declaration System (EDS).

The following must be submitted:

• documents confirming payment (invoices or receipts for driving school services),
• bank payment confirmations or an account statement,
• depending on the situation — confirmation from a vocational education institution that the driving school training is part of a vocational education programme, or a statement from the employer confirming that the acquired skills are necessary for performing the job duties.

The most important thing is that the payments must be official and traceable (the safest option is by bank transfer).

Declaration is done in the annual income declaration:

• log in to VID EDS,
• select “Annual income declaration”,
• add the expenses in the “eligible education expenses” section,
• upload the documents (PDFs or images),
• and submit the declaration.

If the payments have been made correctly and the driving school ensures transparent accounting (as in the case of Presto), the process is simple and predictable.

Why are transparent payments in a driving school so important?

This is exactly where one of the biggest problems in the driving school sector arises.

For VID to accept the expenses:

• payments must be transparent,
• traceable,
• correctly documented,
• and linked to a licensed educational institution.

Presto’s electronic driving and payment system is designed so that:

• all payments are transparent,
• the student can see their history,
• it is possible to receive correct documents (agreement, invoice) for VID purposes.

This significantly reduces risks and makes the tax refund process easier.

Students also need to be careful

Society often talks about the “grey zone” in driving schools — direct payments from students to instructors.

In reality, the problem is not only on the side of driving schools.

An uncomfortable truth must also be acknowledged — sometimes students themselves look for ways to:

• pay in cash without accounting,
• “agree on a lower price”,
• or avoid official payments.

Sometimes such solutions are also offered by instructors themselves, bypassing the driving school system.

However, it is important to understand:

short-term “savings” may later mean:

• an impossible VID refund,
• accounting problems,
• unresolvable disputes about training quality,
• or unclear total costs.

That is exactly why a transparent electronic system and official payments are often much more beneficial for the student themselves in the long term.

Why does Presto emphasise this especially?

Presto’s electronic system ensures transparent accounting of training, payments and documents, which significantly simplifies the preparation of the VID declaration.

Presto’s business model is based on:

• electronic driving organisation,
• centralised accounting,
• transparent payments,
• and more favourable terms for the customer.

This means:

• fewer hidden costs,
• less chaos,
• easier control over progress,
• and simpler preparation of VID documents.

👉 “Real example”

If average driving school costs in Latvia often approach or exceed EUR 1000, then:

• EUR 200–300 saved through a more efficient system,
• plus the VID refund,

the total benefit can reach approximately EUR 812–912.

That is why, for many people, Presto becomes the most financially beneficial and safest choice — both today and in the long term.