Is commercial property subject to 5% VAT in Dubai?

Yes. Sales and leases of commercial property, offices, shops, warehouses, industrial units, are standard-rated at 5% VAT, as are their service charges. A commercial purchase over AED 5 million is a 'capital asset' with a 10-year VAT adjustment period. On secondary commercial sales the buyer often pays the VAT directly to the FTA via a special mechanism. Verify treatment before signing.