Nowadays, the use of power converters to control active and reactive power in AC–AC grid-connected systems has increased. With respect to indirect AC–AC converters, the tendency is to enable the back-to-back (BTB) voltage source converter (VSC) as an active power filter (APF) to compensate current harmonics. Most of the reported works use the BTB-VSC as an auxiliary topology that, combined with other topologies, is capable of active power regulation, reactive power compensation and current harmonic filtering. With the analysis presented in this work, the framework of the dynamics associated with the control loops is established and it is demonstrated that BTB-VSC can perform the three tasks for which, in the reviewed literature, at least two different topologies are reported. The proposed analysis works to support the performance criteria of the BTB-VSC when it executes the three control actions simultaneously and the total current harmonic distortion is reduced from 27.21% to 6.16% with the selected control strategy.