A simplified control scheme for supply voltage sensorless three-phase active power filter (APF) is presented. The objective is to eliminate harmonics and to compensate the reactive power of an uncontrolled rectifier taken as a non-linear load. The APF is realized using 3-phase voltage source inverter (VSI) with dc bus capacitor. Reference peak value of the source currents is estimated using P-I control over dc-bus voltage. Current commands of the APF are obtained with reference source currents and load currents. A hysteresis-band current controller is used to generate PWM current commands that derive gating signals to the switching devices. A low cost Intel 80C196KC microcontroller is used to implement this function. The experimental results are presented to prove the near sinusoidal and low harmonic content of the ac-line currents.