I'm confused by your confusion.
A 1d quantum system "lives" in a Hilbert space ##\mathcal{H}_{x}## that is spanned by linear combination of base kets of the form ##\left|x\right\rangle##. You can also have another independent degree of freedom living in a Hilbert space ##\mathcal{H}_{y} ## with base kets of the form ##\left|y\right\rangle ##. Then, you can combine both degrees of freedom into a Hilbert space ##\mathcal{H}_{xy}=\mathcal{H}_{x}\otimes\mathcal{H}_{y}##, that is how the Hilbert space of a 2d quantum system is build. The base kets are of the form ##\left|xy\right\rangle \equiv\left|x\right\rangle \otimes\left|y\right\rangle ##
So ##V'=\alpha xy## is always a shorthand for ##V'=\alpha x \otimes y##, because that's how the operators acting on the Hilbert space of 2d quantum systems are build, by definition.
See Cohen-Tannoudji, quantum mechanics, vol 1, page 160.