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Yup, 1.8T has a timing belt. And the mechanics generally recommend you to replace the water pump while you're doing the timing belt job as well.
Come to think of it, when I still had my 1.8T, I seem to remember Blitzkerg mentioning that some sort of secondary / accessory air pump on the MkIV cars have a tendency to fail as well, and replacing them is another $1k+ job. But again, it has been a solid 7 or 8 years since I sold the car, so my memory is a little hazy on that one.
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