Firstly wiggle the steering wheel back and forth to ensure the steering lock is not holding it in there (you have likely done that anyway). Then get a pair of pliers or multigrips to take a firm hold on the key, and wiggle it slightly up and down while trying hard to extract it. Some force may be required so make sure to pull only straight along the axis of the key while bouncing it up and down a little.
In any case it seems the key and lock are worn down so they don't match any longer. Your best option in the long term is to buy a new lock cylinder and have an auto locksmith (some do specialise - they are the ones who do work for dealers) rejig it to match the best key you still have.
If you cannot get the key out that locksmith will be needed as the next step.
http://technoanswers.blogspot.in/2012/02/key-wont-turn-in-ignition-on-toyota.html
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How to remove ignition switch on VW Car models?
http://schematicsdiagram.blogspot.com/2011/12/how-to-remove-ignition-switch-on-vw-car.html
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http://schematicsdiagram.blogspot.com/2011/12/how-to-replace-ignition-switch-on.html
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