Yes, you can.

Before you start, make sure you’re signed in to your tablet as the owner.

To factory reset your Kobo tablet:

Tap the Home icon at the bottom of the screen.
Put your finger at the top of right of the screen and swipe down.
The settings shortcuts will appear.

Tap the Settings icon.
Swipe up at the left of the screen until the Personal section appears.
Tap Backup & reset.
Tap Factory data reset.
Tap Reset tablet.
Tap Erase everything.
Your Kobo tablet restarts, and the Setup screen appears.