The attraction, based in Chilthorne Domer, near Yeovil, has operated under an animal exhibition licence for 12 years and runs open days for schools and reindeer meet and feed experiences.
But Somerset Council said following a review of the premises it would need to apply for a zoo licence, or reduce the number of public opening days to a maximum of six, “which would remove the need for a licence”.
Following the development, Liberal Democrat MP for Glastonbury and Somerton, Sarah Dyke, has raised the issue in parliament to clarify what kind of animal licence is needed for venues with reindeers.