It will be recorded as a negative special item in third-quarter results.
The company has been under a cloud since 2015 over its equipping of diesel cars with illegal software that enabled cheating on USA emissions tests.
With the additional charges, the German auto maker has increased its provisions to cover the costs of the diesel scandal to EUR25.1 billion, ($29.67 billion) from EUR22.6 billion previously.
Separately Munich prosecutors made an arrest in connection with the scandal.
Google proposes remedy in response to European Union antitrust crackdown
The service will remain part of Google itself, but will "operate separately and use its own revenues to bid for ads". Google presented its plans to the commission at the end of August but did not make them public until Wednesday.
Hatz was head of engine development at Audi from 2001 to 2007, before moving on to lead powertrain development at the VW group and then becoming research and development chief at Porsche, another VW subsidiary. It's unclear if or what he might be charged with, but his arrest seems to be related to ongoing investigations of emission cheating at Audi - another automaker under VW's umbrella that is facing Dieselgate fallout.
In the United States, where the diesel test-cheating scandal originated, the carmaker must also provide hardware fixes and in some cases buy back cars.
Porsche SE, which owns a 30.8 per cent stake in Volkswagen, said the new provisions would also affect its results, but stuck to a wide range for its expected 2017 post-tax profit of between 2.1 and 3.1 billion euros. The money will be put towards plans to buy back or fix 500,000 tainted USA diesel cars after the company reached a settlement with US authorities totaling to more than 5,000 euros per vehicle.
Three months ago, the U.S. Environmental Protection Agency approved planned fixes to Volkswagen's 2-liter engine diesel cars from 2009 through 2014, including the Jetta, Jetta SportWagen, Golf, Beetle, Beetle Convertible and Audi A3 models.