Factoring (sometimes called accounts receivable financing or invoice financing) is a financing arrangement whereby a company agrees to sell receivables at their face value, less a discount, to another entity or factoring company. The purchaser of the receivables (also called the factor) then becomes the creditor of the sold receivables. As an alternative to assigning the receivables, factoring companies also accept pledges on the receivables against a loan granted by the factoring company.
Are there any VAT related issued regarding the assignment of receivables?
The assignment or transfer of receivables is exempt from VAT under Belgian VAT law. The way in which the consideration is paid in exchange for the assignment of the receivables and the amount of the consideration can however alter the VAT treatment.
Source Loyens Loeff