Payment terms are where English invoices most often go wrong. Leave the due date, the bank charges, or the late-payment treatment vague, and you invite slow payment and a smaller net amount. This article covers the wording Japan-based businesses need for overseas invoices, with examples you can copy.

Due dates (Net 30 and friends)

In English-speaking markets, due dates are usually written as "Net + days."

  • Net 30: pay within 30 days of the invoice date.
  • Net 15 / Net 60: within 15 or 60 days.
  • Due on receipt: pay immediately.
  • Due date: 2026-10-31: a specific date.

"Net 30" normally runs from the invoice date, but spell it out as net 30 from the invoice date so both sides agree. In BridgeInvoice, entering the terms in days fills the due date from the issue date automatically.

Say who pays the bank charges

International transfers can incur intermediary bank fees on top of the sending fee, so the amount that lands can be less than expected. The three standard allocations are:

  • OUR (we pay all): All bank charges, including intermediary bank fees, are borne by us.
  • SHA (shared): Bank charges are shared: each party pays its own bank's fees.
  • BEN (payer pays all): All bank charges, including intermediary bank fees, are to be borne by the payer.

Japanese practice usually puts transfer fees on the payer, so Please note that bank transfer fees are to be borne by the payer. is common. BridgeInvoice adds the matching English note when you choose the allocation.

Late-payment interest

Stating a late-payment charge up front makes chasing easier.

  • A late payment charge of 1.5% per month may apply to overdue amounts.
  • Overdue invoices are subject to interest as stipulated in the agreement.

If your contract sets no rate, Japan's Civil Code statutory rate applies to domestic transactions. Since 1 April 2020 that rate is variable (initially 3% per year) and is reviewed every three years, so confirm the current figure before quoting a specific number.

Deposits and milestone payments

For larger or longer projects, a deposit or milestone schedule is common.

  • Deposit: A deposit of 30% is due before work begins; the balance is due upon completion.
  • Milestones: Payment schedule: 50% upfront, 50% on delivery.

If you receive a deposit, note it and the remaining balance on the invoice or receipt so the client's records match yours.

Currency and the exchange rate

Payment terms and currency interact. If you invoice in a foreign currency, you carry the exchange-rate risk between the invoice date and the day the money lands. If you invoice in yen and let the client convert, the risk shifts to them, though overseas clients often prefer to be billed in their own currency. Whichever you choose, say so clearly, and if you show a yen reference on a foreign-currency invoice, note the rate and its date so there is no dispute later. A line such as Prices are quoted in USD and are subject to the exchange rate at the time of invoicing sets expectations for a quotation that may be accepted weeks later.

Chasing an overdue invoice

Clear terms make a polite follow-up easy. A first reminder can simply restate the due date and the outstanding amount: This is a friendly reminder that invoice No. INV-0001 for USD 3,000 was due on 2026-10-31 and remains outstanding. If your invoice or contract stated a late-payment charge, you can reference it in a later reminder. Keeping the SWIFT/BIC details and bank-charge allocation on the original invoice removes the most common excuses for a delayed or short payment.

Copy-ready terms

  • Payment terms: net 30 from the invoice date.
  • Please remit payment to the bank account below. All transfer charges are to be borne by the payer.
  • A late fee may apply to payments received after the due date.
  • For international transfers, please use the SWIFT/BIC code provided.

FAQ

Should the due date run from the issue date or the receipt date? Usually the invoice date. To avoid a mismatch, write from the invoice date explicitly.

Do I have to include late interest? No, but stating it in the contract or invoice gives you grounds to chase a late payment. If you quote a rate, check your contract or the statutory rate.

Setting terms that reduce disputes

Good payment terms are as much about clarity as about the numbers. State the currency and, if you show a yen reference, the rate and its date. Put the SWIFT/BIC code and the bank-charge allocation on the face of the invoice, not in a separate email. Give a specific due date as well as the "Net" phrasing, so there is no argument about which day the clock started. For a new client or a large amount, a deposit reduces your exposure; for an ongoing relationship, consistent terms across every invoice make your cash flow predictable and your reminders routine rather than awkward.

Retainers and recurring invoices

Many overseas engagements are monthly retainers or subscriptions rather than one-off projects. For these, fix the terms once and repeat them: a set amount, a set currency, the same bank-charge allocation, and a due date driven by a consistent number of days from each issue date. Number the invoices in a predictable sequence so both sides can reconcile them, and state the billing period clearly, for example Retainer for October 2026. If you raise invoices on a schedule, a tool that stores the client and line items and reminds you each period saves re-keying and keeps the numbering clean. Consistency here is what turns chasing payments into a routine rather than a monthly negotiation.

FAQ (continued)

Can I charge in advance for a retainer? Yes. State it plainly, for example This retainer is billed in advance for the coming month, and set the due date before the period begins. Advance billing is common for ongoing work and reduces the risk of late payment.

Should I mention VAT or GST for clients outside Japan? Your invoice reflects Japanese consumption tax, not the client's local VAT or GST. In most cases a service to a non-resident is export-exempt in Japan, and any VAT or GST obligation sits with the client under a reverse-charge mechanism in their own country. You generally do not add or collect the client's local tax, but if a client asks, point them to their own advisor. Keep your note simple, such as Japanese consumption tax: 0% (export-exempt), and do not attempt to state a foreign VAT rate you are not responsible for.

Related reading

Summary

Make three things explicit on an English invoice: the due date (such as Net 30), who pays the bank charges, and any late-payment interest. The bank-charge allocation matters most, because it directly changes the amount you receive.