Assignment of receivables, also known as cession, is a legal and financial mechanism through which a creditor transfers its claim against a debtor to another party, without changing the debtor or the underlying obligation, meaning that only the person entitled to receive payment is changed, while the debtor’s liability remains the same. This instrument is widely used in business practice as a lawful and efficient way to improve liquidity, manage cash flow, and settle mutual obligations between companies. Three parties are involved in an assignment of receivables: the assignor, who is the original creditor transferring the claim; the assignee, who becomes the new creditor; and the debtor, who is required to fulfill the obligation in favor of the assignee after being properly notified of the assignment. As a general rule, the debtor’s consent is not required unless the assignment is contractually or legally restricted, but notifying the debtor is essential in order to ensure valid and correct payment. The transfer is executed through an assignment agreement, which must clearly define the receivable being assigned, its amount, legal basis, maturity, and the terms of transfer, thereby ensuring legal certainty and reducing the risk of disputes. Both due and undue receivables may be assigned, together with ancillary rights such as interest, securities, and guarantees, unless otherwise agreed, while the debtor retains the right to raise any defenses that existed against the original creditor prior to receiving notice of the assignment. From an accounting perspective, assignments of receivables require accurate recognition and recording in the books of all parties involved, in line with applicable accounting standards and supported by complete documentation. From a tax perspective, particular attention must be paid to VAT treatment, as the assignment of a receivable itself is not considered a supply of goods or services, although indirect tax effects may arise depending on the structure of the transaction. Improper documentation, incorrect accounting treatment, or non-compliance with tax regulations may lead to challenges in collection, legal disputes, or increased tax risk, which is why assignments of receivables should be carefully planned and professionally executed in accordance with applicable legal, accounting, and tax regulations.