In this report, the operation of a normally-off vertical gallium nitride (GaN) metal-oxide field effect transistor with a threshold voltage of 5 V is demonstrated. A crucial step during device fabrication is the formation of the highly n-doped source layer. The authors infer that the use of molecular beam epitaxy (MBE) is highly beneficial for suppressing diffusion of the magnesium (Mg) p-type dopants from the body layer grown by metal-organic vapor phase epitaxy into the source cap. Repassivation of the previously activated Mg acceptors by a hydrogen out-diffusion treatment is suppressed in the ultrahigh vacuum growth environment. Structural and electrical data indicate that the defect density of the GaN substrate is currently limiting device performance much more compared to other effects like varying surface morphology resulting from fluctuations in III/N stoichiometry during the MBE growth.