Try re-matching the old key first: (Only 1 key required)
The matching must be completed within 1 minute.
1) Press either the open or close button on the remote once for approx 1 second.
2) Now lock or unlock the car with the key.
The key should now work if it is okay.
You can buy a cheap key on eBay (must be the right type), get the blank cut by a locksmith, and match the remote to the car.
If the car is a B5 this key will perform all operations.
If the car is a B5.5 this key will perform all operations except run the engine; to run the engine, the RFID chip would need to be matched to the car by a dealer or VW approved locksmith.
In either case you will have 2 keys for remote matching.
PASSAT VW REMOTE PROGRAMING w/out second key | eBay
Programming the REMOTE portion of the folding key unit is simple and is referred to as matching.
You do need 2 keys. Test: You must be able to lock the driver’s door with the key and have the red led alarm light next to the lock button blink. If it does not blink, the alarm does not know the door is closed and will not go into matching mode. If it does blink, it is working properly, you can then proceed.
Put one key in the ignition switch, turn ignition on, do not start engine. Close the door,(you are outside of the car) use 2nd key, turn door lock and hold in lock position for 10 seconds. Release key to neutral position.
Press a button on the remote, wait 2 seconds and press the same button again, the turn signal lights will flash.
This indicates your remote matches the car system and is now recognized. Unlock the door with the key, remove the other key from the ignition.
Have all keys and remotes in your hand. Close the door. (you are outside the car) Remote should now work
Remotes DO NOT WORK with the ignition on or if a key is in the ignition switch. They only respond during matching with the ignition on.
If you have more than one remote, you must repeat the procedure and REMOVE the key from the ignition each time. Removing the key from the ignition finalizes the procedure.