Thanks for the feedback. They're well aware that I'm located in Canada as all of that information was outlined on the initial agreement. I'm just a bit taken back as I've worked with other clients who have never asked for this. It's likely that these particular clients would like to declare these expenses/right them off to lower their taxable income, I just wish they would have mentioned this before hand so I could have prepared for this.. The sub-contractors are based in Europe so it's really a massive loss for me if I were to go that route.
Also, I've already been paid in full. So at this point I have nothing to lose really.