That is the one  used and as you can see I have towed the VW with a few different tow vehicles. The one you choose depends on if you have a Supper or Standard beetle.
Mine is a Super beetle and the bar was very easy to fasten. You will need some grade 8 bolts (metric) the dia. of the ones you remove but longer. I used ones about 1 1/4 inches long. I also used blue Locktight but still check them from time to time.
Once the tow bar is installed, (about an hours work or less) you will need to provide an attachment point for the safety chains.
I used a 4 ft length of 5/16 chain attached with shackles. On the right side of the frame you will see a towing loop welded to the frame. It is about 3/8" stock. that works fine for that side but the left side needs something attached. I used a 3/8 chain coupling and removed one of the bolts that holds the sway bar and using a longer bolt and some strong washers bolted it on.
Seems to work fine.
You of course CAN'T fasten the safety to the tow bar itself. If the tow bar was to come loose for some reason the chains would go with it.
Once that is done I used a magnetic mount tail light assembly that I picked up at Canadian Tire. That allowed me not to have to
tie into the car wiring.
At first I placed the lights on the roof but found some scuff marks so I made a couple of brackets and mounted them using the bumper support bolts. The lights fit there just like if they were made for it.
Now with that done you are ready to tow.
The newer VW's or at least mine has a steering lock that does not lock until you remove the key.
This allows you to leave the steering unlocked but the ignition to be turned off.
If your steering lock won't allow this you will have to disconnect the battery.
If you don't allow the wheels to turn and follow the corners you will scuff the tires badly and put a lot of strain on the steering components. 
That's about it but don't try to back up. I know that doesn't work too well. I have a dented fender to prove it.
We do tow our Bug with a motor home and a Pontiac Van.
When towing with the motor home you can't tell it's back there. In fact you even can't even see it.
I have one of those small flags that are window mounted that I put in the right window and I can see the flag when towing knowing
that the bug is still back there.
Our motor home is a 24 ft Class C with a 350 Chev engine.
The latest motor home is a 32 ft Class A with a 454 Chev engine.
Happy towing and if you have any more questions please let me know.