Is 5% VAT charged when buying commercial property in Dubai?

Yes. Selling commercial property in Dubai - offices, retail, warehouses, hotels, factories - is a standard-rated supply subject to 5% VAT on the sale price. This differs from residential property, which is generally VAT-exempt (a new home's first sale within three years of completion is zero-rated). The separate 4% DLD transfer fee itself is not subject to VAT.