Is it a performance engine or just an engine to push your car around? If you don't care about performance and just want a pusher it is not necessary. VW engines were not balanced from the factory.
--louis
VW engines WERE balanced from the factory!
Maybe not to high spec race tolerance but pistons and rods were within 5gms of eachother- sufficient for a stock low rpm motor
Crank assemblies were also dynamically balanced
Picking up 4 miscellaneous rods off the floor you could have as much as 50 gms difference between lightest and heaviest
A cheap set of kitchen scales will get you close enough for a low rpm moderate performance motor
I've seen an engine pound itself so bad due to massive unbalance the brand new case needed a 1mm line bore to clean up the main bearing saddles after only 600 miles
Brand new Mahle piston/cylinder kits rarely have pistons within 5gms of eachother
As for dynamic balance - if you're using the original crank and flywheel you probably won't be too far off for a basic build
Lightening the factory flywheel removes the original balance correction (drillings on perimeter)
Result: runs way off spec compared to the unmodified version
KEP clutches come with instructions advising against further balancing
Not sure what tolerance KEP work to but it's obviously a million miles off what I use
Your choice...