SUMMARY 9/2004

Applying the Principles of Sustainable Building in Housing Construction Plans and Their Assessment

Demands relating to the promotion of the principles of sustainable development are coming to be incorporated into political declarations and international agreements at the highest levels. Support for international research targets a number of issues directly resulting from the general demands for sustainability. The process was initiated in the Czech Republic with a slight delay in comparison with other advanced countries. Nonetheless, the degree to which sustainability principles are applied is gradually approaching a level comparable to the average in older EU countries. Some countries, traditionally more oriented towards these issues, are, however, still a good step ahead (e.g. the Netherlands, Germany, Sweden, Denmark, etc.).

Progress in the construction of buildings must above all focus on reducing their energy demands, making effective use of natural resources, making economical use of the water supply, and limiting the quantity of harmful emissions and waste. The selection and composition of structural elements and the technology for their implementation are required to be of high functional quality to meet the demands of the structureús long-term functionality. The construction design of buildings must therefore be based on how it is estimated that the structure will behave throughout its entire life cycle, i.e. it is necessary to take into account cycles of maintenance, repair, and the exchange of individual parts of the structure. This requires harmonising the longevity of individual structural elements and ensuring the easy replacement of elements with reduced longevity.

Refurbishing the Housing Stock in the Context of Sustainable Development

The phrase "sustainable development" has over the past decade come to be used with considerable frequency in the field of building and construction. At times it seems that it is used perhaps too often, and thus at first glance it may give the impression of being a passing nod to fashion. That however is a purely superficial perspective. It is now an established opinion in the professional community that sustainable development is not a new and independent field, but is rather an essential and fundamental approach to solving complex problems, an approach that must become a vital perspective and standpoint. In the field of building and construction a clear effort has emerged to implement aspects of sustainable development in the complex sets of requirements observed in the design of elements, structural parts and structural units, with the aim of ensuring optimal user quality not only at the present time but also with a view to future generations.

The current housing stock is a field that cannot be overlooked and one in which the establishment of these dimensions place an important role. Estimates for all of Europe indicate that after 1950 approximately 80 000 large residential units of various types were built, housing 170 million people in 50 million flats.

VAT in the Housing Sphere

The Czech Republic has now been a member of the European Union for several months. Prior to membership the country was required to integrate numerous regulations and other legal norms into the legal code. One of the most important directives in the area of taxation is the so-called Sixth Directive, which relates to value added tax. The new law on VAT no. 235/2004 Coll. resembles in logic the previous one, but it also contains a number of differences, especially in connection with the fact that the European Union is a single customs zone, and previous customs borders have been removed and inter-community transportation is governed by entirely new rules. In connection with the Sixth Directive (and in just several cases also beyond the requirements set out therein) the majority of the taxable supply has been transferred into a basic rate (19%). Remaining in this basic rate are mainly food products and medicine. A number of other types of taxable supply were and remain exempt from tax, including real estate rental.

The new law on value added tax introduced a number of changes not only in relation to the rate levels and the instant when tax obligations arise, but also with respect to how various transactions are assessed. In a number of cases the interpretations of new regulations have been made stricter, and the first amendment to the new law is already being prepared. Therefore it is necessary to address this issue on an ongoing basis, and we will return to the subject again in future issues of this periodical.