QAP Reporting When a Supplier Factors Its Receivable: Whose TIN Goes on the Alphalist?

Factoring a receivable moves cash, not the identity of who earned the income — so when your supplier assigns an invoice to a bank or financing company, your QAP still lists the supplier’s TIN and name, not the factor’s, even if you’re instructed to wire payment to the factor’s account. The factor bought a financial asset (the right to collect); it did not sell you the goods or perform the service the invoice is for, so it was never the “payee” your withholding tax obligation runs to in the first place.

This guide explains why a factoring or receivables-assignment arrangement doesn’t change a QAP row, how a notice of assignment interacts with your existing withholding duty, and a worked example for a customer that keeps paying expanded withholding tax (EWT) on a factored invoice. For the related documentary-stamp-tax question on the assignment itself, see Is Assigning or Factoring Accounts Receivable Subject to Documentary Stamp Tax?; for QAP basics, see What Is QAP? Quarterly Alphalist of Payees Explained.

Why the factor isn’t the “payee” on your QAP #

The Quarterly Alphalist of Payees (QAP) identifies the person who earned the income your payment represents — the party that sold you the goods or performed the service — not whichever account eventually receives the cash. A factor that purchases your supplier’s receivable at a discount is buying a financial asset: the contractual right to collect what you already owe. It is not re-performing the sale or re-rendering the service your original invoice is for. Section 236(j) of the National Internal Revenue Code (NIRC) is explicit about whose identifying number belongs on a BIR filing in the first place:

“Any person required under the authority of this Code to make, render or file a return, statement or other document shall be supplied with or assigned a Taxpayer Identification Number (TIN) which he shall indicate in such return, statement or document filed with the Bureau of Internal Revenue for his proper identification for tax purposes.”

— Section 236(j), National Internal Revenue Code (NIRC), as amended

That requirement attaches to the taxpayer the document is actually about. For a QAP row covering your purchase from a supplier, that taxpayer is the supplier — the entity whose income is being reported and whose BIR Form 2307 you’re issuing — regardless of which bank account physically receives your payment. Reporting the factor’s TIN instead would misidentify the real income earner on a BIR filing, the same structural problem this site covers from the opposite direction in What to Do When a Payee Gives You a Wrong or Missing TIN for QAP Reporting — except here the TIN isn’t wrong because it was mistyped, it’s wrong because it’s the wrong party’s TIN altogether.

A notice of assignment redirects cash, not withholding #

A notice of assignment is a collection instruction, not a substitution of parties in your underlying purchase contract — your withholding obligation, your BIR Form 2307, and your QAP entry still run to your original supplier. When a factor buys your supplier’s receivable, standard practice is for the factor (or the supplier) to send you a notice of assignment directing you to pay the factor’s designated account going forward. That notice changes your payment instructions. It does not:

• Make the factor the party that sold you the goods or services
• Change the Alphanumeric Tax Code (ATC) that applied to your original transaction with the supplier
• Shift who is entitled to claim the expanded withholding tax (EWT) credit via SAWT — that remains the supplier, since it is the supplier’s income tax liability the credit offsets

Keep a copy of the notice of assignment in your files alongside the original invoice and contract. It documents why your payment went to a third-party account, which matters if the BIR or an auditor later asks why your bank disbursement records show a different payee than your QAP and BIR Form 2307 do — the answer is the assignment notice, not a reporting error.

Does the factor ever get its own QAP entry? #

Generally, no — not from you, the customer. In a typical factoring arrangement, the factor’s compensation is the discount it builds into what it advances to the supplier (it pays the supplier less than the invoice’s face value and collects the full amount from you). That discount is a transaction between the factor and the supplier; you, the customer, aren’t the one paying it, so no withholding obligation or QAP line runs from you to the factor on that basis. The only scenario where the factor would show up on your own QAP is if you independently owe the factor a separate, direct income payment unrelated to collecting your supplier’s receivable — an unusual fact pattern in a standard non-recourse factoring deal, and one you’d confirm against your own contract with the factor rather than assume.

Worked example: a factored ₱500,000 invoice #

Luzviminda Hardware Supply Corp. sells ₱500,000 (VAT-exclusive) in construction materials to Benguet Builders Inc. on 60-day credit terms. Luzviminda factors that receivable to Cordillera Financing Co. at a 4% discount shortly after invoicing, receiving a ₱480,000 advance, and Benguet Builders receives a notice of assignment instructing it to pay Cordillera Financing directly when the invoice falls due.

Benguet Builders’ QAP for the quarter lists Luzviminda as the payee for ₱500,000 with ₱5,000 EWT, exactly as it would have if no factoring had occurred — the only operational difference is that the ₱495,000 cash payment physically lands at Cordillera Financing instead of Luzviminda. Luzviminda still receives a BIR Form 2307 for ₱500,000/₱5,000 from Benguet Builders and uses it to support its SAWT claim; what Luzviminda nets after Cordillera’s 4% factoring discount is a separate financing transaction between those two parties that never touches Benguet Builders’ QAP.

Summary #

Factoring changes who receives your payment, not who earned the income your payment represents — your QAP, your BIR Form 2307, and your withholding computation all continue to run to the original supplier, identified by the supplier’s own TIN under the Section 236(j) identification requirement. A notice of assignment is good documentation for why your cash disbursement records show a different name than your QAP, not a reason to change the QAP itself. Keep the assignment notice on file, and see Is Assigning or Factoring Accounts Receivable Subject to Documentary Stamp Tax? for how the assignment itself is taxed, and What Is QAP? Quarterly Alphalist of Payees Explained for the rest of what a QAP row must contain.