This document presents a fuzzy logic controller-based universal active power filter (UAPF) for single-phase systems that compensates for harmonics and reactive power without using a transformer. The proposed UAPF configuration combines parallel and series active filters. It reduces lower order harmonics and total harmonic distortion. A mathematical model of the system is derived and it is shown that circulating current must be controlled. Simulation results using MATLAB/Simulink show that the proposed transformerless topology achieves harmonic compensation performance comparable to the conventional transformer-based configuration.