According to the provisions of the Value-added Tax Law of People's Republic of China (PRC), enterprises and institutions should pay taxes when selling food and providing catering services, and need to issue VAT invoices. For the canteen subsidy allocated by the project contracting party to the contractor, the contracting party needs to issue a special VAT invoice or an ordinary VAT invoice.

What kind of invoice should be issued should be determined according to the contractual agreement between the two parties and the provisions of the local tax authorities. Generally speaking, if the subsidy amount is large and there is a clear catering service contract, it is recommended that the employer issue a special VAT invoice. If the subsidy amount is small or there is no catering service contract, an ordinary VAT invoice can be issued.

Of course, the most accurate way is to consult the local tax authorities and determine the invoice issuing method according to the specific situation.